Archive for May, 2005
Rules For Ira
May 27th, 2005
Question: Do exitsting contracts remain valid after a corporate merger or buyout?
My bank was bought out by another bank. The new entity claims that rules regarding my IRA are no longer valid. Specifically, there will be interest penalties for moving my IRA to a different institution when there were no penalties in the previous agreement. What takes precedence, the existing contract or the new rules? I signed no agreements after the merger/buyout.
Answer: The new rules generally apply. Best bet is to call the Banking Regulatory department for the state where you live.
Banks are very highly regulated and they can easily have their licenses revoked or fined if they do anything illegal.
IRA fees, checking account fees, etc can pretty much be changed at any time, with proper notice to the account holder
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