I am fleeing PenFed as the IRA CDs mature due to their low rates. The initial 2 transfers were uneventful. For some reason on the second round of transfers PenFed sent me letters telling me what was going to happen. They didn't do that the first time but I'm glad they did. The third transfer sounds like it would be fine. However number 4 would be transferred 2 days before maturity which was not what I requested. In addition to that shocker, number 4 was a Roth which would be put in the TIRA rollover acct and transferred from there.
.........so in addition to an early withdrawal penalty, I would be taxed again on the Roth when I withdrew funds from the now TIRA.
I called destination bank B to confirm what their instructions to PenFed had been. Fortunately they were correct. If they had been in error, I could have been guilty since I provided bank B w/ the instructions so I breathed a sigh of relief.
PenFed IRA dept was not available so I need to call them tomorrow to find out if the confirming letter was in error or if they actually think the transfer should be as reflected in the letter.
Moral of the story: Be sure to get written confirmation of the impending transaction so that you can act, if necessary, before it happens.
.........so in addition to an early withdrawal penalty, I would be taxed again on the Roth when I withdrew funds from the now TIRA.
I called destination bank B to confirm what their instructions to PenFed had been. Fortunately they were correct. If they had been in error, I could have been guilty since I provided bank B w/ the instructions so I breathed a sigh of relief.
PenFed IRA dept was not available so I need to call them tomorrow to find out if the confirming letter was in error or if they actually think the transfer should be as reflected in the letter.
Moral of the story: Be sure to get written confirmation of the impending transaction so that you can act, if necessary, before it happens.