Have a Tax Question? Ask a Tax Expert
Thank you for your question. In order to move your IRA investments into a CD, the IRA would have to own the CD. If you held the CD in your personal name (outside the IRA) you would have to pay taxes on your distribution.
However, most banks also offer IRAs so you could roll over your IRA into that bank, and then the IRA could buy the CD. It would stay in your retirement account but you would have that CD.
I don't recommend taking your IRA funds out until necessary, if you can avoid it.
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