Retirement CD tax questions

pc4400 · 06-14-2011, 12:49 AM

Hi everyone,

I moved a 401k account to a "retirement CD" a while back. I was forced to become a consultant so the 401k account wasn't doing anything.

When my retirement CD matures what can I do with it that does not involve paying tax? I'm assuming if I touch it I'll have to pay tax on it. So my question is;

Any advise is greatly appreciated

MadDog · 06-14-2011, 10:00 AM

Just renew the CD. Simple.

Maestro · 06-14-2011, 10:31 AM

Not sure why you did not roll it over in to a IRA, and find better investments vs a CD. as it was pointed out you can convert to another CD or you could possibly roll in into an IRA which will give you more investment options than a plain old CD.

Honestly, you put the money into a CD once you are retired to preserve the capital.

pc4400 · 06-14-2011, 12:06 PM

Thanks!

I've actually been looking at IRAs and have been thinking about moving to a traditional IRA. But I had to ask here, since most of you guys know this stuff so well.

SoCali E36 · 06-15-2011, 02:41 AM

either renew the CD for what ever rate at the moment or move the money over to a IRA savings account for liquidity but at the same time you get shit rates. depending on your age i would recommend speaking to an investment adviser and actually finding a way to make that money work for you.

06-14-2011, 12:49 AM	#1
pc4400 Second Lieutenant 19 Rep 203 Posts Drives: 335i Join Date: Oct 2009 Location: SoCal iTrader: (0)	Retirement CD tax questions Hi everyone, I moved a 401k account to a "retirement CD" a while back. I was forced to become a consultant so the 401k account wasn't doing anything. When my retirement CD matures what can I do with it that does not involve paying tax? I'm assuming if I touch it I'll have to pay tax on it. So my question is; Any advise is greatly appreciated
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06-14-2011, 10:00 AM	#2
MadDog Careful, I Bite..... 157 Rep 504 Posts Drives: 2006 325i Join Date: Dec 2006 Location: S.F. Bay Area iTrader: (0) Garage List 2006 325i [7.50]	Just renew the CD. Simple.
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06-14-2011, 10:31 AM	#3
Maestro Major 1074 Rep 1,268 Posts Drives: 2007 335i Sedan, 2021 X3 Join Date: Nov 2006 Location: Philadelphia iTrader: (0)	Not sure why you did not roll it over in to a IRA, and find better investments vs a CD. as it was pointed out you can convert to another CD or you could possibly roll in into an IRA which will give you more investment options than a plain old CD. Honestly, you put the money into a CD once you are retired to preserve the capital.
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06-14-2011, 12:06 PM	#4
pc4400 Second Lieutenant 19 Rep 203 Posts Drives: 335i Join Date: Oct 2009 Location: SoCal iTrader: (0)	Thanks! I've actually been looking at IRAs and have been thinking about moving to a traditional IRA. But I had to ask here, since most of you guys know this stuff so well.
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06-15-2011, 02:41 AM	#5
SoCali E36 BMW Client Advisor 1100 Rep 3,539 Posts Drives: X5 40e/e36 M3 Sedan Join Date: Jan 2008 Location: Where the road takes me... iTrader: (10)	either renew the CD for what ever rate at the moment or move the money over to a IRA savings account for liquidity but at the same time you get shit rates. depending on your age i would recommend speaking to an investment adviser and actually finding a way to make that money work for you. __________________
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