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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Is it allowed to roll over classicalIRA Annuities into a

Customer Question

Is it allowed to roll over classicalIRA Annuities into a Bank CD? Do you need to pay taxes on that?
Submitted: 2 years ago.
Category: Tax
Expert:  Megan C replied 2 years ago.

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.

Please let me know if you need anything additional. If not, please rate.