GTE Financial Cds And IRA Cds:Any Way To Avoid Early Withdrawal Penalties ?

dasachs | Dec 19, 2023 | 6 posts since 2023

I have IRA CDs at GTE Financial in Dallas. I need to close them and move the money to higher paying CDs at other institutions. Is there any way to do this ? At one point in the past, Southern Girl posted that she knew how to do this but never posted any details.

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Answers

glasses | Dec 19, 2023 | 21 posts since 2019

It depends on how old the share certificate is. About a year ago they tightened up the provisions on EWPs, and said they could withdraw the penalty from principal. Before that the penalty could only be withdrawn from interest, so on those older certificates you could withdraw the interest, then a day later close out the principal without any penalty.
However, that might not have applied to IRAs, so you need to read the fine print to see it the EWP applies only to interest on yours. BTW if you withdraw the interest on an IRA, don't forget that you have to put it into another form of IRA to keep it from becoming taxable income.

sams1985 | Dec 19, 2023 | 781 posts since 2022

Unfortunately, this ship has sailed and they closed those loopholes.

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