Ira's

[frankday]

What is the name of your state? Wisconsin

I have a IRA{traditional} , The Maturity date is December 2006 . Where are my options ? I know I have 10 days to cancel or it'll rollover, I absolutley donot want it to rollover, In Dec. 2002 I opened ira ,in 3 years, as of 2005 i earened 387.00 .I've worked hard to get what i have & 387.00 will not cut it....
Can I receive the money at maturity ? OR Do I have to transfer the money to some other investment ??
I do know , know matter what . I donot want to leave it where it is, I need advice what options i have when it matures.

Thank you

 

[tranquility]

Tell the bank you don't want them to roll it over. I'm going to assume it is CDs held in the IRA which are being "rolled" and not the IRA. They'll keep it in cash or put it in a money market until you decide what to do with it.

Don't take the money out now to put it somewhere else. It will be easier to do a trustee to trustee transfer.

 

[kNOwtheLAW]

What is the name of your state? Wisconsin
I have a IRA{traditional} , The Maturity date is December 2006 . Where are my options ?

A CD offers a ‘guaranteed’ rate of return and is insured by the FDIC for amounts of less than $100,000 per account. If it’s important for you to have that ‘guarantee’ an alternative might be a deferred annuity. While the interest rate may be higher than a CD you will generally be required to lock your money into that investment for a longer period of time, e.g. 3, 5, 7, 10 years, and annuities are only backed by the assets of the underwriting insurance company. If you are willing to accept more risk you may want to look into mutual funds. These are security instruments that offer no guarantee of any kind, but offer the potential of higher returns (and potential losses) than guaranteed investment products.

I know I have 10 days to cancel or it'll rollover, I absolutley donot want it to rollover, In Dec. 2002 I opened ira ,in 3 years, as of 2005 i earened 387.00 .I've worked hard to get what i have & 387.00 will not cut it....

IRAs are retirement saving programs and the investment product you choose will determine how slow or fast your money will grow, and how safe or risky your investment will be.

Can I receive the money at maturity?

Yes, subject to income tax & any applicable penalty (< age 59 ½) in the year you receive the money.

Do I have to transfer the money to some other investment ?

You may affect a ‘direct rollover’ into another investment vehicle at any financial institution (bank, insurance company, investment brokerage) offering investment products for IRAs. The term ‘direct rollover’ means you do not personally withdraw and take possession of the money. Instead, you go to your bank or other financial institution and open an IRA account directing them to transfer the dollars from the current account to the new account. This direct rollover request must be made prior to or within the ‘window’ of the CD renewal. If you elect to personally withdraw the account balance the financial institution is required to withhold 20% for income taxes and an addition 10% penalty could be assessed if you have not attained age 59 ½.

KTL

 

[anteater]

Keep in mind that, three years ago, interest rates (and, therefore CD rates) were close to being at a 50 year low. They are substantailly higher now.

If you are a very conservative investor and do not want to place your IRA funds into anything riskier than CD's, check the CD rates at your bank now before going through a trustee to trustee transfer or withdrawing.

(I am a bit unclear on why you are surprised at the interest credited. When you established the IRA, you should have known what the CD interest rates were.)