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Moving Matured IRA/CD to MMA

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I have a client with a matured IRA/CD. Will there be a penalty if they move the matured IRA/CD to a Money Market Account? The client is 72 years old. They want to use the money for a down payment for property.

A client has an IRA account and whether that IRA account is invested in a CD or a Money Market Account is neither here nor there as long as they don't move it out of the IRA account. Whether you allow products like a Money Market Account to be held within the IRA account is another issue. If they move it out of the IRA account, they we be subject to taxes on the entire amount removed. Once you reach 59 1/2, there are no penalties for a withdrawal of IRA funds.

First published on 01/05/2020

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