Quote:
Originally Posted by retiredguy123
With regards to your first paragraph regarding CDs outside of an IRA, as I understand it, you can always withdraw accrued interest without penalty. And, you are taxed on accrued interest on an annual basis regardless of the term of the CD, or whether or not you actually withdrew the interest. I have owned a lot of CDs, and have always received a 1099-INT every year from the bank and paid income taxes on the accrued interest even when I didn't actually withdraw any interest.
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It's taxable when the interest is actually credited to you account even if there are restrictions on the CD - not on an accrued basis.
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Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passions, they cannot alter the state of facts and evidence. John Adams
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