How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds

If you transfer money from a Rollover Individual Retirement

Resolved Question:

If you transfer money from a Rollover Individual Retirement account to a Certificate of Deposit what are the Tax Implications. Im Disable and retired from the Post Office. Married, wife still work. Im 59 yrs old.
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.

Hello JA Customer,


Anytime that you actually withdraw money from your IRA account, the amount you withdraw must be included as part of your taxable income for the year. If you are under age 59-1/2 at the time the withdrawal is made, an additional 10% early withdrawal penalty also applies.


The rate of tax that you would pay on the withdrawal depends on how much other income you and your wife have total for the year, as that it what ultimately determines the tax bracket you are in.


Just so you know, you do not have to actually withdraw money from your IRA account to purchase a CD. You can have your IRA custodian use the funds in your IRA account to purchase a CD on your behalf and simply let the CD remain part of your IRA account, in which case no taxes would be due because you would not actually be withdrawing the money from the the account.


If this was helpful please press the Accept button. Positive feedback is also appreciated.


Thank you JA Customer



Merlo and 3 other Tax Specialists are ready to help you

Related Tax Questions