IRA Statement Savings

**paelthom** · 03-22-2005, 11:20 AM

Does anyone have an IRA account that is set up similar to a statement savings account? You can put in as much money anytime you want (up to the IRS limits). I just opened one of these. The interest is not nearly as good as a cd but it's a way for me to build up the money towards a cd. If I just say I'm leaving it in regular savings until it's the yearly amount and then put it into an IRA account (currently $3,000 I think), it always ends up getting spent. So this is my new plan. I will put a little each month into this IRA account and when it's enough I can move it to a better interest paying cd or account.

Seems weird in a way, but for people like me who has a hard time keeping their money in the savings, I think it's a good idea.

**PrairieRose** · 03-25-2005, 06:35 PM

Pat if you're actually putting this into an IRA you have to be careful about taking money out of the account before retirement age b/c you'll pay a big penalty (20-30% or something like that...you'll be paying tax on the money twice). If it's not an actual IRA then it won't be a problem.

We have an IRA with our bank and we get a statement on it about 4 times a year b/c we're not contributing monthly. I surely do like watching it grow though

**paelthom** · 03-25-2005, 08:07 PM

I have the cd type IRA through the same bank. This acct. is an IRA and I can't withdraw but I can switch it over to a IRA cd once the amount is enough. It's going to be a slow crawl but I figure something is better than nothing.

**PrairieRose** · 03-26-2005, 11:10 AM

Yes you can certainly do that. I just didn't read that in your first post. I was hoping you weren't going to take a big hit when you moved the money. Whew! I don't know if our bank even offers such a thing.