Investment withdrawal that was reinvested in a CD

Forum|Forum|6 years ago
April 8, 2020
1 reply
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I'm preparing my mother-in-laws taxes for the first time. She's 88 and withdrew 54K from an investment that she then reinvested in CD. She received a 1099 from the firm she withdrew the money from. How do I show the reinvestment in the CD on Turbo Tax so the withdrawal is not considered taxable income?

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DaveF1006

in order for this not to be investment income, the rollover would need to be deposited into another retirement account such as a Roth IRA. A CD is considered an investment account and not a retirement account thus the distribution is taxable.

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