Author Topic: $100 IRA fee / winding down / charge offs  (Read 1690 times)

Debt Free

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$100 IRA fee / winding down / charge offs
« on: March 03, 2017, 05:14:21 PM »
So I spoke to LC about winding down of both IRA and taxable accounts...

Q:  When winding down an IRA account and it drops below $10,000, will we start getting charged the $100 annual fee?
A:  No and yes.  If money is being withdrawn as RMD's after retirement, then LC recognizes the issue and continues paying the $100 fee.  If winding the account down prior to retirement (as in to liquidate and move), no it will become the responsibility of the owner.

Q:  When an account is closed, what happens to recoveries from the notes that were charged off?
A:  Owners sign a document releasing interest in any money recovered upon account closure.

So I'd imagine, with at least a taxable account, leaving it open with a zero balance for a year or so.  I don't think they'd go for that with an IRA.

gottodo1

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Re: $100 IRA fee / winding down / charge offs
« Reply #1 on: March 08, 2017, 12:16:48 PM »
Thanks for posting this it's very timely.

My plan for the taxable account is to purchase just one more note right before the last ones finish out, let it sit there and fester for 3 years and then when that's done just let it sit with 0 balance until they decide to close it or circumstances change and I restart.