Gearhead Jim
Full time employment: Posting here.
The latest email from PenFed says, among other things, that starting September 1 members over 59 1/2 can not longer redeem IRA certificates without penalty, unless the distribution is a RMD.
That's too bad, their certificates have been a "win-win" deal for those of us over 59 1/2: if rates went down, you had a lock on the original high rate. If rates went up, you could turn in the certificate for one with the new higher rate, no penalty.
Existing IRA certificates will be grandfathered to maturity for one trade, after that you pay the penalty.
Does anyone know of another institution that still allows the "redemption without penalty" on their IRA certificates?
That's too bad, their certificates have been a "win-win" deal for those of us over 59 1/2: if rates went down, you had a lock on the original high rate. If rates went up, you could turn in the certificate for one with the new higher rate, no penalty.
Existing IRA certificates will be grandfathered to maturity for one trade, after that you pay the penalty.
Does anyone know of another institution that still allows the "redemption without penalty" on their IRA certificates?