Apple ID email being discontinued.

The account will work even though the email is defunct, but you are better off changing the email address to a working email address so you can receive password reset emails and other necessary emails from Apple.

You can change your Apple ID email address on your current Apple ID so you retain access to your data and prior purchases. Note the restrictions in the article.

Apple ID Name Change.  * 

Make sure you turn off Find My Phone before signing out of the old ID. Once signed out and Find My Phone is off, then sign in with the new ID, then turn Find My Phone back on.

 What to do after you change your Apple ID or password - Apple Support  *  I suggest doing this before you change your Apple ID or password.

If you are told the address you want to use isn't available, remove the address from your Apple ID. Apple hasn’t published any guidance for using an address again. Normally, if your e-mail address was associated with an ID in any way, for example as a Notification email address or a Rescue e-mail address, then it can't be reused as an  Apple ID email address for approximately one year. I have also seen posts that stated Apple told them there was a 30 day waiting period before the address could be used again. You will need to get another e-mail address from somewhere like AOL or Yahoo to use as your Apple ID or you can try waiting 30 days to see if that works.