Questions and Answers
Can a financial organization charge an early withdrawal penalty on an IRA certificate of deposit that hasn’t reach maturity if an IRA owner is age 70½ or older?
A financial organization can indeed charge a penalty for early distribution from an IRA investment that has not reached maturity, unless it has previously disclosed that it will waive the penalty in certain circumstances, such as reaching a specific age or if an IRA owner has died.
(Posted: 01/16/2008)