Matured IRA
I’m 73 1/2 years old… I have a $50,000 IRA that matures in August… What happens if I end their maturity, pull out the money, and put it underneath my mattress. will, I have to pay taxes on that money and how much.
Terry Says
Don’t do that! Your IRA does NOT “mature.” But if you have a CD that matures in August, and you turned 73 in 2025 — then you must take your first RMD by April 1 of this year. Your IRA custodian should NOT charge a penalty for breaking the CD, if that’s what you have. Then make sure they help you calculate the proper RMD for last year (based on your 2024 year-end account value). And ask them to withhold 15% in income taxes.
With the remaining money in your IRA, you should ask them to move half the money into a money market account INSIDE the IRA. And then you can renew the other half in a one-year CD. That way you’ll have cash for your next RMD, which is based on 2025 year-end value — and which must be taken sometime this year.
DO NOT take the rest of the money out. Not only will you owe ordinary income taxes, but your Medicare Part B and D premiums will soar!
