termination fee(redirected from Early termination fee)
Also found in: Acronyms.
A one-time fee charged to an account holder if he/she transfers or cancels an IRA. The termination fee is levied by the brokerage or bank that manages the IRA and must be spelled out in the agreement that created the account. Some brokerages and banks do not charge a termination fee. See also: Prepayment penalty.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. Some institutions, particularly banks and savings and loans, may not charge termination fees.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.