I am 74 years of age and have my 401K in a cd which is receiving 5% interest. But it will expire next year. I am interested in pulling it out and investing in 2
Foreclosed homes to use for rent property which will give me more than if I left
The sum in a cd which would be lucky to get 2% interest. What kind of penalty
Would I have to pay for taxes. Or what bracket would taxes be due on $170,000?

To be clear - you aren't trying to roll the IRA investment from a CD to rental property, correct? (Note - it's possioble but extremely tricky to have real estate inside the IRA.) Instead you are looking to withdraw from the IRA and use the proceeds for this other investment.

Assuming this is a traditional IRA (not Roth) the penalty for withdrawal is $0 (no early withdrawal penalty as you are over 59-1/2 years of age). But you will have to pay income tax on it - federal as well as state/local if applicable depending on where you live. The amount you withdraw is considered ordinary income, so the income tax you will have to pay depends on your tax bracket. Add the $170K to your other taxable income and subtract your normal exemptions and deductions to determine what your total taxable income is, and from that you can determine your marginal tax bracket. If your total adjusted gross income is $170K it puts you in the 28% federal tax bracket.