Template:InvestmentWithholdingSetup

Field	Description
Default Withholding Rate	Amount of investment withdrawal and/or interest payment withheld when required. Associated with investments other than IRAs. Can be used in combination with the Withhold when blank taxid field in this window. If the IRS notifies your organization to withhold from a certain individual, attach the code “TAXN” to the name/address record of the investor
Withhold When Blank Taxid	Indicates whether or not to withhold interest when investor’s tax ID number is blank within their Account. If selected, the system will withhold even if investor's tax ID number is blank
IRA Withholding Rate	Amount of investment withdrawal and/or interest payment withheld when required. Associated with IRA investments
Penalty Rate	Percentage penalty assessed in the event a term investment is redeemed prior to maturity
Penalty Method	How the penalty amount is assessed in the event a term investment is redeemed prior to maturity. Click the drop down arrow to select from a list of active penalty methods configured in the system. For information on how penalty methods are calculated, please reference this document: Early Redemption Penalty Options
Penalty Source	Used to identify the rules followed when determining the appropriate penalty rate on each investment. Click the drop down arrow to select from a list of active penalty source codes configured within the system
Investment Penalty Fixed	Indicates whether the penalty rate for an investment remains fixed or fluctuates. Used in tandem with the Penalty Method and Penalty Rate fields. If selected, the investment penalty is fixed
Waive Penalty Days	This allows clients to initiate an investment withdrawal within a certain number of days of the purchase date without applying penalty. Sometimes the investor does not send in instruction on what to do when an investment matures until after the maturity date. In this case a new investment may have already been created with a new purchase date. This setting controls whether the system tries to collect penalty on an investment that is being redeemed prior to maturity
Allow edit of calculated penalty amount	If this option is selected, users with the appropriate security will be able to override the system calculated penalty amount on the Investment Payout and Investment Transfer and Payout screens