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Problem: An inherited IRA CD worth $60,000 paying 5.5% compounded daily that does not mature for another year. IRA rules require I take about 10% a year in distributions. If I sell the CD now, the penalty would be $1,600. Question: Is it better to keep the CD until it matures or would it be better to pay the penalty and move it in to a mutual fund or other investment that would hopefully gain 10% a year?
I feel I am loosing money if I leave it in the CD. What are your thoughts?
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