ira cd’s

have an ira with a well known firm since late 1993. currently receiving rmd’s.i’m 76. been watching this ira value drop for about a year now. can this ira be transfered to cd’s with the same firm without penalty? would this be a wise short term investment? thanks



Yes, direct transfers to IRA CDs could be done, but managing your RMDs will be easier if you used brokered CDs in an IRA brokerage account and left enough other investments to satisfy your RMD. CDs might be a good investment now despite their yields trailing inflation, but selling the other investments will lock in your losses on those investments. Also, if this is a bank you will probably have an IRA account for each CD and can only move the funds by direct transfer when they mature due to your limit of only one 60 day rollover per 12 month period.



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