Ask Terry Questions CGM Mutual Fund Liquidation & CD’s in 401K?

CGM Mutual Fund Liquidation & CD’s in 401K?

By Terry Savage on January 21, 2023 | Financial Planning / Retirement

Hi Terri, Thank you for the response to my question on WGN Radio today about an IRA fund liquidation at CGM Mutual Fund out of Kansas City. They claimed to have sent letters about dissolving the fund, but to the best of my knowledge neither my wife nor I can recall getting that notification. They sent the distribution checks, but also made payment to the IRS.

I was told by a help line person at Fidelity that in a company 401k, they either you could not or Fidelity could not offer an option which would allow to to move money into a CD. Is there some reason why that would be the glass?
Thanks, Tom

Terry Says

A lot depends on when the securities were sold and the distribution made — and was it inside an IRA or a company 40l(k) plan, and does that 40l(k) plan still exist.
Frankly, I’m not quite clear about what happened.

Probably, since the money was distributed and taxes withheld, the easiest thing would be (unless you are under age 59-1/2 and subject to a 10% penalty) just let it go, take the money and invest it outside a retirement account. OR if you are still working, you could open an IRA for 2023, and contribute the money to that to keep growing tax-deferred.



a personal
finance question