Reply To: Are cash withdrawals from a matured CD taxable

Home Fairmark Forum Taxation of Investments Are cash withdrawals from a matured CD taxable Reply To: Are cash withdrawals from a matured CD taxable

#72776
Kaye Thomas
Moderator

No problem, thanks for the clarification. The interest accruing on CDs in this type of account is taxable when earned, not when withdrawn. Presumably you have been receiving Form 1099 each year showing the amount of taxable interest, and reporting it on your tax return if your overall income was enough to require you to file. There is no additional tax to pay when the money comes out of the account. Withdrawals from a regular bank account are not taxable.