topic Re: What do I owe in Retirement tax questions

What do I owe

AlanR — Tue, 21 Jan 2020 14:41:10 GMT

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?

Re: What do I owe

DianeC958 — Tue, 21 Jan 2020 17:48:41 GMT

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.

Re: What do I owe

dmertz — Tue, 21 Jan 2020 17:53:57 GMT

AlanR, it makes no sense to do what you are proposing. Purchase a Roth IRA CD instead by nonreportable trustee-to-trustee transfer. If someone else has suggested that you do this, they are not operating in your best interest.

Re: What do I owe

AlanR — Tue, 21 Jan 2020 18:38:56 GMT

It's already been done-even if it was a dumb move.

Re: What do I owe

Jjhen26 — Wed, 29 Jan 2020 23:21:19 GMT

What do I owe the IRS

Re: What do I owe

KarenM90 — Sat, 01 Feb 2020 00:23:18 GMT

Can you clarify what you are asking?

Have you reviewed your Tax Summary (Tools/Tax Tools/View Tax Summary) to see the taxable income, payments and tax calculation?