Solved
What do I owe
If I sell my ROTH IRA and buy a non IRA CD, the only tax I will owe is on the CD interest from the time of purchase on - correct?
It depends. If you are selling the ROTH IRA and you are not 59 1/2 years old you and the account has been open for less than 5 years you will have tax due on the CD interest and you may also incur a 10% penalty for early withdrawal.
If your ROTH IRA has been open for 5 years and you are under 59 1/2 years old you may withdraw the earnings without penalty, but you will owe taxes on the earnings amount you withdraw.
The amount that you put into the ROTH IRA originally you can withdraw without penalty or taxes begin charged on the withdrawal.
If you are over 59 1/2 years old and the account has been open for 5 years you will not have any tax due on the withdrawal.
Click on this link for more information about withdrawing from a ROTH IRA.
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