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Limit of Distributions On IRA Accounts

Answered by: 
Randy Carey

Question: 
Is there limit to the # of distributions that can be taken from an IRA account in a set period of time? We set up IRA accounts via Time Deposit products (CDs) and they are non-transaction accounts. So, I'm wondering about the customer's ability to treat the IRA CD like a checking account and if there is a limit. The customer in question took 18 distributions in 2014 from her IRA, which is an IRA/CD with us. She is over 59 1/2.
Answer: 

Your bank allowing withdrawals from a CD is totally up to the bank and your CD contract. There is no requirement that your bank allow early withdrawals from a CD without penalty whether it is an IRA or not. The number of withdrawals allowed would be a matter of your contract. Any withdrawals within six days of one another would require an automatic seven day interest penalty under Regulation D.

First published on 07/05/2015

Filed under: 
Operations
Filed under operations as: 
Certificate of Deposit
IRA

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