How Do You Close An IRA Account?
Many IRA account holders are afraid to close their accounts. It’s true that you may face some tax penalties, but that depends on the type of IRA. Closing your IRA doesn’t have to be a hassle. Be sure you carefully read all the information pertaining to your IRA, especially anything you received while setting up the account. This should help prepare you to close your IRA account. Check your IRA information about possible closing fees and possible ways to avoid them. Some institutions wave the fee if you are simply transferring to another account or institution. Others waive a fee if you close during a rollover period. Contact your financial institution, whether in person or online, to see what forms need to be filled out or signed. Discuss the institution’s policy and see if there is a specific time to close the account that may reduce or eliminate fees altogether. Ask your institution about taxes. Normally, you will pay a small tax fee on your earnings. Read all closing information car
