I previously posted on the confusion among bankers as to the various provisions regarding the waiver of the EWP for RMDs from IRA CDs. Well, friends and neighbors, today was classic. I called my bank with what was (I thought) a fairly straightforward question. Your T+C provides that the EWP will be waived for any RMD from an IRA CD. I explained, slowly and succinctly, that I wanted to satisfy my 2018 RMD from the IRA CD I would be transferring into the bank. I emphasized my TOTAL RMD, not just that portion (3.77%) attributable to the bank's IRA CD. No problem, I was told. I reiterated, just to make clear, that the amount would be roughly half of the CD. Would that still qualify for the waiver? Sure, I was told. I said I would take the other half out in 2019 as my 2019 RMD.
So, I motor on over to the bank, and met with the branch manager. I explained what I was told by her colleague (who was sitting a few feet away), and got that "deer in the headlights" look. To make a long story short, he was wrong and she didn't have a clue. She called the home office's IRA Department. If, and only if, all your IRA CDs were already with the bank would you be able to take your annual percentage from one IRA CD. Of course, that was also assuming you had no IRAs other than IRA CDs with that bank. Grrr.
Solution: I'm still moving the money (into a MMA). Half the MMA will be liquidated shortly after the money hits, the second half will be plopped into a 13-mo IRA CD. I'll take that out in 2019.
Lesson Learned: This was what should have been a fairly simple question, and a fairly simple transaction. I was there in person. I can only assume the anguish had I tried to do it long-distance.
Suggestion: For those DA readers hitting RMDs, make sure you get everyone (including the IRA Department in the home office) to "sign off" on what you want. It's a minefield.
