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I HATE Banks!!!
babun
Member Posts: 11,038 ✭✭✭
So, last week I had to go to a branch of The First Tenn. Bank, because I am the beneficiary on my deceased Girlfriends IRA.
Nothing too big, just a nice little amount.
They tell me I have to open an IRA with them, then they put the monies into it, then I close out the account to get the money.
This was all done on day one.
So we do it.
The women says I should have a check next week.
Nine days go by now and today I get loads of info from that bank thanking me and telling all about the services and benefits I'm getting with
their IRA.
NO check.
So I call her again...."you should have a check by next week"
[:(!][xx(][:(!]
How many "next weeks" are banks allowed to use before I get my money, and can I USE the "next week" line with car payments, mortgages, loans?????
Nothing too big, just a nice little amount.
They tell me I have to open an IRA with them, then they put the monies into it, then I close out the account to get the money.
This was all done on day one.
So we do it.
The women says I should have a check next week.
Nine days go by now and today I get loads of info from that bank thanking me and telling all about the services and benefits I'm getting with
their IRA.
NO check.
So I call her again...."you should have a check by next week"
[:(!][xx(][:(!]
How many "next weeks" are banks allowed to use before I get my money, and can I USE the "next week" line with car payments, mortgages, loans?????
Comments
Their business model depends on taking as much away from you as they can.
That's a big part of it....
The amount of check was set on a date 14 days ago...what happens if the stocks/funds go up in the mean time??
Guess the bank gets a little "Gift'.
I'm sure if the stocks drop, there would be an adjustment lower to me.!
Their business model depends on taking as much away from you as they can.
And charging you to hold your money.
Some things to think about, is the IRA a Roth IRA or a traditional?
C&P
Nonspouse beneficiaries have two options for liquidating the account.
They can choose to take distributions over their life expectancy, known as the stretch option, which leaves the funds in the IRA for as long as possible. Or they must liquidate the account within five years of the original owner's death.
The stretch IRA is the tax equivalent of the treasure at the end of the rainbow. Hidden beneath the layers of rules and red tape is the ability to shelter funds from taxation while they grow for decades. In the case of a Roth IRA, earnings accumulate tax-free.
One slip-up by the beneficiary or even by the benefactor before death, and that tax gem can be lost forever.
Instead, the beneficiary will be forced to take the money out of the IRA under the five-year rule. For substantial accounts, that can add up to a monstrous income tax bill -- unless the IRA is a Roth, in which case taxes were paid before money went into the account.
Distributions from an inherited Roth IRA will be tax-free unless the account was established less than five years before -- in which case the earnings may be subject to tax.
Nonspouse beneficiaries can be done in by procrastination. In order to choose the stretch option, a beneficiary must take yearly required minimum distributions, or RMDs, based on his or her own life expectancy.
There is a cutoff date for taking the first RMD.
"You have to take out your first distribution in the next calendar year by Dec. 31 of the calendar year following the year that the decedent died. If you miss that date, you default back to the five-year rule," says Tully.
The take-away for inheritors: Don't rush to make any decisions, but do be aware that the clock is ticking.
Now I think I'll buy a WHOLE box of 50 .22lr's.
[:0][:D]
Deposited most, and took cash back...twice as much as I had in that account.
Been a customer there for 20 years.
Like "tomorrow" - "next week" never comes.
The only thing worse than "next week" or "tomorrow" is "ma?ana".