[Stu from NYC]

Originally Posted by Boomer

Re. RMD amount based on brokered CDs, at year’s end

Two Questions:

2023 is the first time I have ever bought brokered CDs. I have been buying short term, 3-6 months. All but one of those have already come due and paid the interest during this calendar year.

But now I have one (possibly soon to be more) that will not pay the interest until 2024. I know that the interest on brokered CDs does not compound. I also know that the amount originally invested in the CD fluctuates along the way — which makes no difference if held to term.

But what I do not know is — how is the year-end value of a brokered CD figured into an IRA for the calculation of the RMD? Original invested amount? Or amount on 12/31?

That range in value will be relatively moot. I am just curious about that part, but the bigger question is about the interest???………

Somewhere along the line, I picked up that the interest on a brokered CD (even if not yet paid in a calendar year due to no compounding) is somehow included in the amount on 12/31, whether it be for the RMD or as interest income from a taxable account. Am I understanding that correctly? Is interest projected somehow even though it has not yet been received, but cannot be thrown over into then next tax year? How does that work?

Boomer

PS: Before the snarky unhelpful types pile on and imply that I am stupid for asking a question like this on TOTV and should ask an accountant — save it. Go read a different thread if you do not like this kind of discussion. I do.

These can be interesting and educational discussions and I like having them here