Pulling previously taxed dividends from CD

[24601NoMore]

Hey, everyone. We have accumulated dividends in a CD (actually a CU Certificate) that have been reported on 1099s previously, and that we paid taxes on.

But we also have Certificate interest this year (2021).

I assume we can pull the accumulated dividends that were paid out pre-2021 without incurring any tax liability or it hitting our AGI or MAGI, right?

Is this correct? If so, any idea how to tell the CU which specific dividends (like "specific lot" when selling a mutual fund) you want to have sent you?

We're buying a new house after a 10+ year search and are...um...cash strapped in a big way at the moment until we can sell the old house.

Thx!

 

[pb4uski]

Withdrawals from a CD are not taxed... you gt taxed on interest as it is credited to the CD. No lots like a mutual fund. Assumes the CD is not in a tIRA.

 

[Done]

Check with your CU to see what your withdrawal options are. Many will allow you to withdraw accumulated interest without an early withdrawal penalty but that will be specified in the agreement. They typically also allow you to choose whether future interest will accumulate or be distributed to a cash account.

Withdrawals are not a taxable event and there is no lot identification. You’ll get a 1099-INT each year reporting interest (if > $10).

 

[24601NoMore]

Thanks, guys. Sounds like we'd be good to withdraw (from the taxable account) without incurring taxes or AGI hit.