What happened to 84-year-old’s Wells Fargo IRA CD?

Time was important.

Lacey resident Diane Dangler wanted Wells Fargo to rollover her father’s IRA CD to Valley National Bank, to take advantage of a 2.25 percent interest rate. But, six weeks later, the money had not budged.

In fact, Dangler said the bank put the funds in a Wells Fargo account with a lower interest rate. “The rate (at Valley National) is still available but can disappear at any moment,” said Dangler, who has power of attorney for her 84-year-old father, who suffers from Parkinson’s disease.

Press on Your Side was able to help.

Certificates of deposit, which limit access to the investment for a period of three months to five years, allow consumers to obtain a better interest rate than they would if the money were in a savings account. An IRA CD offers tax benefits as well, said Greg McBride, chief financial analyst at Bankrate.com.

After they mature, and no longer accrue interest, the consumer can cash out a CD with a check or roll it over into an another account, McBride said.

But an IRA CD, like the one Dangler was dealing with, is different. Cashing it out would mean that her father would be taxed on the entire value. “You have to do it from institution to institution so you don’t burst the tax-protection bubble,” McBride said.

According to Dangler, her father’s IRA CD amounted to more than $162,000 when it matured on Feb. 16.

Read on.

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