- NOTE: IRA-CD's distributions are done through redemption of the CD by utilizing Tool #22 Close Memberships/Accounts unlike standard IRA distributions which are processed through teller transactions.
- In order to process a distribution that involves withholding (whether state or federal, or both) on an IRA-CD, the withholding should done as individual partial redemptions using the proper state/federal withholding codes prior to processing the net partial/full redemption that the member is requesting.
This is a two-step process.
- On the Redemption screen via Tool #22, use the "Redeem to Another Account Transfer" option to make the distribution.
- Then for the federal and state withholding, use Tool #492 Member Account Adjustment (Full) to make a member account adjustment from the member's account to the proper withholding G/L.
NOTE: This process can also be accomplished by printing a check fund transfer (CFT) via
Tool #884. Generally, however, this method is used for a member wanting regular transfers.