Quote:
Originally Posted by retiredguy123
Your IRA custodian will determine the value of your IRA, including brokered CDs, on December 31. As I understand it, this will include the market value of the CDs (not what you invested) and any accrued interest that would be taxable income if it were not in an IRA.
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Thank you. . .that brings me to another question, or two:
So, am I understanding correctly that the operative words there are “accrued” and “would be”……..
Does that then mean that the brokered CD’s interest is
projected and taxable (or figured into next year’s RMD amount) though not paid out in the current tax year? (Kind of phantom-like?)
Actually, the CD I have is in an IRA. It will not reach its term until 2024 when it will pay the interest to me — no compounding along the way, I know. BUT……..
It sounds like “accrued” interest will apply inside an IRA, too; therefore, having an effect on next year’s RMD. Is that how it works?
If so, how is the accrued interest figured? Does an interest amount just show up on 12/31, even though it is not accessible to the CD holder yet?
I am brand new to brokered CDs. I obviously need a little fine-tuning on the subject.
Boomer