I recently opened a traditional IRA account and requested the bank to make the contribution for the year 2015. They made a mistake and made the contribution for year 2016! Once I found out about the mistake made 5 days after opening the account, I contacted the bank about the error and they gave me hard time by telling me that it's easy fix but I have go through writing a letter and having it faxed to them for the process to fixing the error. They were also not very attentive to my concern or courteous.
Well I decided not to bank with them cause the level of customer service I was getting was not so good. I went in to a local branch and asked them to close IRA account as I had decided to open it at a different bank. The representative that assisted me didn't know much about IRA and just closed it and cashed me out of my contribution as a distribution.
I then on the same day went to other bank where I opened another traditional IRA account in the year of 2015 where I wanted to make the contribution. So glad that I came to this other bank as they treated me with much more attention and detail. I was also informed that the original bank where I initially opened the IRA, the representative that closed my account should had told me do a transfer of the IRA instead closing it as a distribution. But he did also say that I am probably ok since I opened another IRA account within 60 days of closing the first one.
Now here is where I am very concerned about what happened and need confirmation or maybe clarification. Will I get penalized for closing IRA at the one back where the contribution was made for the year 2016 and then opening the another IRA account at a different bank in the current year of 2015. The original bank also never corrected year where the contribution was made before closing it. And to clarify, I opened the new IRA in the same amount as the one I closed and all this happened with in a span of one week.
Thank you all your help.
Well I decided not to bank with them cause the level of customer service I was getting was not so good. I went in to a local branch and asked them to close IRA account as I had decided to open it at a different bank. The representative that assisted me didn't know much about IRA and just closed it and cashed me out of my contribution as a distribution.
I then on the same day went to other bank where I opened another traditional IRA account in the year of 2015 where I wanted to make the contribution. So glad that I came to this other bank as they treated me with much more attention and detail. I was also informed that the original bank where I initially opened the IRA, the representative that closed my account should had told me do a transfer of the IRA instead closing it as a distribution. But he did also say that I am probably ok since I opened another IRA account within 60 days of closing the first one.
Now here is where I am very concerned about what happened and need confirmation or maybe clarification. Will I get penalized for closing IRA at the one back where the contribution was made for the year 2016 and then opening the another IRA account at a different bank in the current year of 2015. The original bank also never corrected year where the contribution was made before closing it. And to clarify, I opened the new IRA in the same amount as the one I closed and all this happened with in a span of one week.
Thank you all your help.
