Since this is being purchased in a IRA, the tax reporting wouldn’t be an issue.The owners are registered before the CD is issued.Hmmm, Vanguard shows the money has been moved from my settlement fund to the "current balance" field of the brokered CD.
Under "Holdings" this line is displayed below the balances of my settlement account and mutual funds:
GLENS FALLS NATL BK & TR GLENS FALLS NY CD FDIC #07074 IAM 4.95% 12/09/24 09/09/24 $100.00 20,000.000$20,000.00
CDs with high interest rates will sell out before the issue date. If you wait until September 8, you probably won't be able to buy the CD.
If you want to start earning interest immediately, you can buy a secondary CD. However, the tax reporting for secondary CDs is more complex because of bond premium, market discount, and accrued interest. Most brokers will amortize bond premium on the 1099-INT and report market discount as non-qualified capital gains on the 1099-B. However, most brokers report accrued interest when it is purchased, not when it offsets the coupon.
Statistics: Posted by 9Iron — Sun Aug 18, 2024 4:44 pm — Replies 7 — Views 967
