My dad passed away and left some CDS for me and my siblings to split up. They are through Edward Jones. Why

Question

is E.J. telling us they HAVE to set up CDS for each one of us instead of each one of us rolling it over to our own 401K plans? Can they legally MAKE us take the CD through them?

Answer 1

If the Cd's were already set up at Edward Jones, and the maturity dates are reasonable, let them mature at which time you and your siblings can do what you want with the proceeds. In the interim they are standing by the wishes of your dad which you should also honor. When you get the money, then roll it over into your  401k plan.

Answer 2

First, you cannot "roll" a CD into a 401k.  Second, a CD is a contractual obligation - you deposit a certain amount of money into CD for a certain amount of time, and you are guaranteed a certain interest rate.  If you cash in the CD before the contracted amount of time, you may be subject to penalties including repayment of some or all of the interest paid out.  I cannot speak for them, but what I assume Edward Jones is doing is asking you and your siblings to fulfill the terms of the CD by splitting up the CD's and leaving them on deposit with Edward Jones.  You should be able to cash out the CD's, however you will be subjected to whatever penalties were prescribed in the original agreement.  I am sorry about your loss, and hope this helps a bit.