Ask Terry Questions Liquidate small IRA cd

Liquidate small IRA cd

By Terry Savage on January 12, 2019 | Investments

Terry, please point out the pluses and minuses regarding liquidating a small IRA ( cd )say 15,000 which is producing a minuscule annual amount, and putting that money into a mutual fund. I am 68. After paying a 10% Tax I’m thinking that it could be recouped in maybe a couple of years in the right fund. I have another larger IRA account which is doing relatively well and will use that one for the MRD when due. Your thoughts please.

Terry Says

Well, there’s a basic error in your thoughts! You don’t have to “liquidate” this account to move it into a mutual fund. If you like the way your larger IRA is performing, just ask the custodian company to help you do a DIRECT ROLLOVER from your small IRA into this account! You won’t pay taxes and your money will continue to grow tax deferred until you withdraw it!

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