No. of Recommendations: 0
Greetings, MeatheadFool, and welcome.

<<Please render advice.guidance and opinions. My Mother's CD will end in Jan.'99.She is 84 and has been receiving required distributions. The value is 50,000+.My questions are many and probably many I haven't thought of. She has been receiving 9% for the life of the CD.(10 yrs) Take it out at once and spread the tax for 4 yrs? Take 1/2 '98 and 1/2 '99 and pay taxes two yrs? Put the money in a Roth, or traditional IRA or dispurse it? Or any advice better than these? >>

You don't tell us much here, but you imply the CD is currently in a traditional IRA from which your mother has been taking minimum required distributions since age 70 ½. If so, after she takes the one for this year, she may convert what's left to a Roth IRA assuming she meets the AGI limitation. The only advantage I see to that is if she can afford the taxes and doesn't need the money, then she no longer has to take MRD. Then, if she lives for five years, all proceeds and earnings can pass to her heirs tax free. Otherwise, as long as she's satisfied with the CD, I for one see no reason for her to move the money.

Regards….Pixy

Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement