Simple IRA Question

[twins0203]

I just read the latest post on MyMoneyBlog.com and had a question regarding IRAs.

The idea of being able to invest and get around 8% annual return sounds great. But lets say for one reason or another, you decided that instead of waiting til retirement to cash out the IRA, you wanted to cash it out. What are the fees/taxes? Or does it depend on where you get it?

Thanks

[sweeps]

Traditional IRA or Roth IRA?

[slimcustomer]

IRS Publication 590 can be helpful answering tax questions surrounding IRAs. Believe it or not, 7 and 8 percent cds had been available earlier this year, even for IRA's - link & link. Here's a 7% cd deal, although their field of membership is limited - link .

[slimcustomer]

Ooops. I forgot that there were also 10% IRA certificate deals available as well - link

[Bluezy]

Originally Posted by slimcustomer

Ooops. I forgot that there were also 10% IRA certificate deals available as well - link

It's 10% for 6 months only...any idea what the rate would be after the first 6 months?

[slimcustomer]

Originally Posted by Bluezy

It's 10% for 6 months only...any idea what the rate would be after the first 6 months?

As per the terms, "At maturity, certificate will renew at the rate in effect at the time of renewal". In other words, a much lower rate in all likelyhood. For those who qualified and had a small sum to save, not a bad deal. Unfortunately this deal has expired, but there are always new deals...

[Fern]

There's always a 10% penalty for early withdrawals prior to age 59.5. But there are some exceptions to this rule, i believe disability is one of them.