I have a Conduit IRA that was created from my old company’s stock and 401k roll over after they changed 401k companies. I no longer work there, so the account is only making dividends but It’s also paying $18 a year for having it open. The car loan was a small one and we got it to build credit but we have established good enough credit that we no longer need it and looking to just pay them off. I want to kill two birds with one stone and get rid of this IRA the best way possible. I tried doing a rollover to my mine TRADITIONAL IRA but I have encountered so many problems with this Company I don’t know if it’s worth keeping it open.
Unfortunately, you won't qualify for an exception to the early withdrawal penalty for paying off the auto loan. I completely understand the frustration with the rollover- I have had a horrible time with one company and the complete opposite with another. You may save just as much over the long run with the admin fees and not paying the interest on the car loan, and you can always do an indirect rollover by putting the amount into your IRA after you receive the distribution from Conduit. (Keep in mind your distribution will be 20% less for the maximum withholding.