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So, should I just leave the money in the CD and draw from it as needed? Is there any penalty? What would be the best thing to do with the CD if my intention is paying for College?

There is a penalty if you want money from the CD before it matures. You also now have a tax problem if the CD has been transferred from just your father to just you becuase it's more than 20K in a single year. If this is the case, you may want to post on the Tax Strategies board for advice on the gift tax issue.

If you are planning to use this money in pieces, when the CD matures, buy smaller CDS for the varying time periods so you have the CDs mature when you need the money and avoid any penalties. See the previous message I posted about checking college bursar websites to get an idea of when bills may come due and arrange the CD maturity dates accordingly.

Jacki

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