Are cash withdrawals from a matured CD taxable I have a CD and when each matures I plan to withdraw 50k a year to pay for my living expenses. As I will have no other income except for earned interest till my social security kicks in 7 years from now, will the money I withdraw on a yearly basis be taxable?? Thanks for your help
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 The interest accruing on CDs in this type of account is taxable when earned, not when withdrawn.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.