Okay so I opened a Roth 401k a while ago on Etrade because you have the flexibility to withdraw funds without penalty at any time. It's kinda like a savings account where any gains you make are untaxed as long as you wait till you retire to withdraw the GAINS. This is the important part; only the GAINS on what you deposit are restricted.
https://us.etrade.com/retirement/roth-ira
Read the chat below if you can make it through.
If you can't please let me summarize:
1. I show the rep where is says on the etrade website that I have: "Flexibility to withdraw original contributions tax-and penalty-free at any time, for any reason."
2. He points me to a page: https://us.etrade.com/e/t/prospectestation/pricing?id=1206010000&vanity=fees#SRF that does not list a "$25 early distribution fee" and he can't point it out to me anywhere on the website.
3. Rep fails to understand the difference between a withdraw and a distribution, even tho he works at a financial company.
4. Page he points me to also says nothing about a $25 withdraw fee for a ROTH IRA.
Conclusion: Etrade is false advertising here: https://us.etrade.com/retirement/roth-ira and on top of that can't point to the fine print policy that charges $25 for a withdraw from a ROTH IRA. Also Etrade is a douchebag company and employs people who don't know basic financial terms.
Here is the nightmare in it's entirety.
Question: Withdrawing money from ROTH IRA
[12:40:46 PM] Christopher Perisho has joined the room
[12:40:46 PM] John S has joined the room
[12:40:52 PM] John S has joined the room
[12:40:56 PM] Christopher Perisho: An investor can withdraw his or her contributions to a Roth IRA at any time without tax or penalty. But, that is not the same case for any earnings or interest that you have earned on your Roth IRA investment.
[12:41:34 PM] Christopher Perisho: I'm trying to take the $500 I have out of my Roth IRA that I put in there. You guys are trying to charge me $25 to do it.
[12:42:08 PM] Christopher Perisho: Well bellow any earnings or interest on the account.
[12:43:43 PM] John S: The IRS will not charge you any penalties. The $25 is an E*trade fee.
[12:44:32 PM] Christopher Perisho: For what?
[12:44:53 PM] John S: For an early withdrawal of funds from an IRA.
[12:46:23 PM] Christopher Perisho: <a href="https://us.etrade.com/retirement/roth-ira" target="_blank">https://us.etrade.com/retirement/roth-ira</a>
[12:46:50 PM] Christopher Perisho: Do you see anything on here about extorting $25 to withdrwaw my own money. Please underline it for me.
[12:47:54 PM] Christopher Perisho: I see this: Flexibility to withdraw original contributions tax-and penalty-free at any time, for any reason
[12:48:25 PM] Christopher Perisho: I dont' see the $25 extortion fee anywhere.
[12:48:54 PM] Christopher Perisho: Hello?
[12:49:11 PM] Christopher Perisho: Where is it?>
[12:49:14 PM] John S: Yes, that is referring to IRS taxes.
[12:49:28 PM] Christopher Perisho: It doesn't say that.
[12:49:37 PM] Christopher Perisho: it says: "Flexibility to withdraw original contributions tax-and penalty-free at any time, for any reason"
[12:50:10 PM] Christopher Perisho: tax and penalty free at any time for any reason.
[12:50:18 PM] Christopher Perisho: tax and penalty free at any time for any reason.
[12:50:20 PM] Christopher Perisho: tax and penalty free at any time for any reason.
[12:50:20 PM] Christopher Perisho: tax and penalty free at any time for any reason.
[12:50:21 PM] Christopher Perisho: tax and penalty free at any time for any reason.
[12:50:34 PM] Christopher Perisho: nothing about IRS
[12:50:35 PM] John S: Here is a link with the E*trade fees: https://us.etrade.com/e/t/prospectestation/pricing?id=1206010000&vanity=fees#SRF
[12:50:44 PM] Christopher Perisho: That
[12:50:52 PM] Christopher Perisho: isn't the page we are looking at.
[12:51:00 PM] Christopher Perisho: <a href="https://us.etrade.com/retirement/roth-ira" target="_blank">https://us.etrade.com/retirement/roth-ira</a>
[12:51:03 PM] Christopher Perisho: This is the page.
[12:51:07 PM] John S: The $25 fee isn't listed on that page.
[12:51:32 PM] John S: It is listed on the Fees page
[12:51:45 PM] Christopher Perisho: Well.. Then it's false advertising isn't it?
[12:51:59 PM] John S: No, because the fee is listed on the fees page.
[12:52:05 PM] Christopher Perisho: Flexibility to withdraw original contributions tax-and penalty-free at any time, for any reason
[12:52:15 PM] Christopher Perisho: Is what it says.
[12:52:23 PM] Christopher Perisho: I will sue.
[12:52:38 PM] Christopher Perisho: Or you can just waive the extortion fee.
[12:53:00 PM] John S: Sorry, this isn't something that we would be able to do.
[12:53:25 PM] Christopher Perisho: Let me talk to your supervisor
[12:56:07 PM] John S: Sorry, supervisors are not available through this chat service. You can call us directly at 1-800-387-2331 and request to speak with a supervisor. Also, here is a link to the account agreement that you agreed to that list Distribution Fees under the Fees section of the agreement: https://us.etrade.com/e/t/estation/contexthelp?id=1209033000#Individual
[12:57:53 PM] Christopher Perisho: I just did a search for $25 on that page and there are zero matches
[12:58:10 PM] Christopher Perisho: Underline it for me.
[12:58:14 PM] John S: You can find it by doing a search for Distribution Fees
[12:58:27 PM] John S: We don't list the fees amounts.
[12:59:20 PM] Christopher Perisho: Oh. no ammounts huh.
[12:59:29 PM] Christopher Perisho: or condtions.
[12:59:46 PM] Christopher Perisho: So it's complete bullshit in otherwords
[1:00:13 PM] Christopher Perisho: Flexibility to withdraw original contributions tax-and penalty-free at any time, for any reason
[1:00:13 PM] Christopher Perisho: Flexibility to withdraw original contributions tax-and penalty-free at any time, for any reason
[1:00:14 PM] Christopher Perisho: Flexibility to withdraw original contributions tax-and penalty-free at any time, for any reason
[1:01:00 PM] Christopher Perisho: I don't want a distribution, I want to do a withdraw of my money.
[1:01:16 PM] Christopher Perisho: Understand the difference?
[1:01:32 PM] John S: That would be the same thing as a distribution. Is there anything else that I may be able to assist you with today?
[1:01:49 PM] Christopher Perisho: No it woudln't look in your dictionary.
[1:02:00 PM] Christopher Perisho: Do you understand that words have meanings?
[1:02:13 PM] Christopher Perisho: Distribution is not a withdraw.
[1:02:49 PM] Christopher Perisho: Fix it.
[1:03:46 PM] John S: Sorry, that is not something that can be waived. Is there anything else that I may be able to assist you with today?
[1:05:09 PM] Christopher Perisho: You are full of crap. No, I don't think its possible for you to help anyone with anything since you can't understand English.
[1:05:29 PM] Christopher Perisho: Talking to you is a waste of my time obviously.
[1:05:52 PM] Christopher Perisho has left the room