I have Roth IRA funds invested in a bank 2 year Certificate of Deposit (CD).
I opened this CD February 2012, it matures Feb 2014.
I am 70 years old.
Will I get a yearly IRS 1099 for the interest earned on this Roth CD?
or will I only get a 1099 at the CD maturity?
..or will I _NEVER_ be issued a 1099?
Unhappily, I get conflicting answers at the bank where I purchased this CD.
Tnx folks..
Lee C.
No.
No.
Yes.
A Roth IRA is a black box. Until money comes out of the Roth IRA -- regardless of what happens inside it -- neither you nor the bank report anything to the IRS.
Note further that the CD maturing is NOT money coming out of the Roth -- unless your bank actually sends the money to you (or puts it in a non-tax-advantaged account) when the CF matures.
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