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angelaid_gw

IRA/CD withdrawal questions

angelaid_gw
7 years ago

Hope this is the right forum. I hope I didn't really screw myself up. I am 55. I have been working for the same attorney for 25 years. I have no retirement, 401K, or anything like that through my employer (I know, I kick myself in the butt every day, but that is another topic). Years ago, I started a personal traditional IRA with some money I had saved up. It has been in 18 month CD's for years, at least 10, with my local bank, earning almost no interest. I was reading about online banking interest rates getting a slightly better return. When my CD's matured last week, I closed the account and had the money transferred to my personal checking account. It was 13,000.00 dollars. I opened an Ally Traditional IRA, an Ally 5 year CD and a Vanguard Target Retirement Fund 2025. The plan was to put 5,000.00 in Vanguard, 5,000.00 in the Ally 5 year CD and the other 3,000.00 into the Ally Traditional IRA. When I deposited 5,000.00 in the Vanguard account, it said there was a 6,500.00 limit per year.

Does that mean I cannot put another 5,000.00 in the Ally CD?

Sorry this is so long. I have no idea what I am doing. Was trying to put my money somewhere earning a little bit more interest. I don't know anything about rollovers, or how else I should have closed the account and distributed the money. I am afraid I am going to have to pay penalties and taxes on this money (13,000.00) when I was just trying to split it into separate, higher interest, accounts, and SAVE it.

The way I understand it, I have 60 days to do something with it. Any assistance would be appreciated.

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