Answer:
by John Burnett: Assuming that the funds in the IRA are invested in one of your bank's CDs, there is a special provision in Federal Reserve Board Regulation D that exempts an early closeout from the early withdrawal penalty requirement during the first six days of the CD's term if the customer forfeits at least the amount of simple interest earned on the amount withdrawn.
That's included in Footnote 1 to the regulation (see 204.2(c)(1)(i)) to accommodate provisions in the Internal Revenue Service's regulations allowing the cancellation of an IRA within seven days.
Answer:
by Ken Golliher: Please look at your IRA disclosure; it addresses the issue.
Per the Internal Revenue Code, an IRA participant has 7 days to revoke a newly opened IRA and, regardless of what it was invested in, you must return the entire amount contributed.
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