IRA or CD Account

Posted by Noel on September 14, 2006, 10:23 pm

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I was wondering on how to setup my 401K account that has just been
rolled over to an IRA CD account. I plan at this time to withdraw the
interest monthly for three years. Should I create just a saving
account or an actually IRA account? TIA

Posted by Route 101© on September 15, 2006, 6:04 pm

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If you moved the 401k assets into a rollover IRA, I believe you should set
the account up in Quicken as an IRA. That way, transactions within the
account (e.g., interest, dividends, sales, purchases, etc.) are not taxable.
Distributions from the IRA are taxable in the year they are taken. Assign
the appropriate tax form for transfers out when you set up the account.
..............................
There is always one more imbecile than you counted on.

>I was wondering on how to setup my 401K account that has just been

> rolled over to an IRA CD account. I plan at this time to withdraw the

> interest monthly for three years. Should I create just a saving

> account or an actually IRA account? TIA