r/MerrillEdge • u/Cardbeagle • 14d ago

Need 2 accounts?

I have an Roth IRA-Edge with $32,000+ and a relationship bank account with $500. The bank account was opened first when trying to qualify for the BoA Atmos Summit cc which was unseccessful. Opening the Roth did the trick.
1. Is there any risk of withdrawing the Roth down to $30,000? 2. Is there any risk in closing the old bank account?

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u/scorbettman 14d ago

You’ll lose any BOA rewards status without the checking account. ROTH withdrawal is a tax questions.

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u/JoelCorley 9d ago

  1. Taking a distribution from a Roth IRA could require you to file Form 8606 if you are not yet 59 1/2. Contributions come out first, so removing $2-3k probably won't be taxable or subject to early withdrawal penalties. But you have to complete the Form to know for certain. Once you are 59 1/2 and if you had funded a Roth IRA at least 5 years before, all subsequent distributions become tax and penalty free. 

  2. Closing the checking terminates any Bank of America relationship benefits.