IRA CD
Can an IRA CD be transferred to a money market account when it comes due? I need it to pay for my husband’s memory care facility, but anything I withdraw is considered income.
Terry Says
Yes, when the CD matures inside the IiRA you should ask the bank —in advance — to just simply put it in a money market deposit account. Then you can write checks for any purpose. BUT, any money you withdraw from an IRA will be taxed as ordinary income. You can ask the custodian to WITHHOLD 20% so you are covered at tax time.
