Bank rollover

[John G]

You may be confusing the "rollover" between IRA custodian and a rollover of a maturing CD. You have an unlimited number of allowed rollovers of IRA to IRA (not involving IRA -> Roth which is a conversion) as long as you never touch the funds and it is processed strictly by the two institutions. If institution A cuts a check for you, then you have 60 days to rollover the funds to another institution. I always suggest that you use the first option, which some call a direct transfer.

If you have an existing CD, you probably do not want to incur the "substantial penalties" of early termination. Therefore, if you plan to switch institutions, time it to your maturity date. Your bank probably charges an exit or termination fee on transfered IRAs.

If you are staying within the same bank and your maturity date is close, talk to the customer reps. A small bank or thrift will probably want to be good to their customer. With large (or out-of-state) institutions, you may not get such a positive response. Some banks may allow you to upgrade a CD, but this is based upon their marketing program not US law or regulations.

[Guest Irv Heineman]

My wife and I have an IRA maturing.I called Provident Bank in Cincinnati Ohio in response to their 6% rate offer.

They said it is not their policy to allow rollover during the term.All other banks allow one rollover during the term

Is this not against the law ???????

Thanks ILH Cape Coral Fl