Withdrawal Guidelines

Related Topics

IRA distribution code edits are processed on share withdrawal, transfer, and certificate surrender transactions. Portico edits for age, amount, miscellaneous authorization, deceased flag, and transaction type criteria.

  • ACH processing does not allow a debit to an IRA share account.
  • Distribution amounts cannot be changed to a positive amount.
  • Excess earning amounts cannot be changed to a value greater than the associated distribution amount.
  • Dividend maintenance should be completed using either the Adjustments – Dividend Adjustment tab for shares or using the Adjustments – Certificate Deposit from General Ledger tab and Adjustments – Certificate Withdrawal to General Ledger tab for certificates.
  • Distributions to the beneficiary of a deceased IRA owner should be completed using the Transactions – IRA Withdrawal to Beneficiary tab.
  • The following withdrawal codes are allowed on the Transactions – Share and Loan Transfers tab: SW - State withholding correction, FC - Fee correction, and FW - Federal withholding correction.
  • Normal distribution codes are allowed for members who have reached age 59 1/2. Portico compares the current date with the date the member is 59 1/2.
  • Premature distribution no exception codes are allowed for members who have not reached age 59 1/2.
  • Portico edits the withdrawal amount against the current value in the Ending Balance field on Account Information – IRAs tab to determine if a partial or total distribution code should be accepted.
  • The transfer out distribution code TO is not allowed on internal transfer transactions, except for the Transactions – Share and Loan Transfers tab. Teller override is required.
  • If the Deceased Member check box is selected on the Contact Information tab, only the following distribution codes are allowed: 4, T, TO, IT, 8, 81, 8J, P, P1, PJ, NM, EC, Q, and PT.
  • Internal transfers on the same member account require a distribution code of IT and an internal deposit code of I, X, or Y.

The following guidelines depend on the value specified in the Miscellaneous Distribution field on the IRA Profile dialog box.

  • Premature with exception codes 2 and 3 for Traditional IRAs are allowed only if the value is 2 or 3. If so, codes 1, 7, G, N, and R will not be accepted.