Permalink Submitted by Alan Spross on Thu, 2008-03-13 21:02
You will have to check with your bank. In most cases, you will probably not be able to transfer the existing CD even though simply designating the current account as a Roth IRA rather than traditional IRA would meet IRS requirements. Banks seem to want to link the CD terms to a specific owner and IRA account # with any changes causing the CD to have to be re issued at current rates and conditions.
You would then either have to incur early withdrawal CD penalties or wait until the CD matures, after which you could have the account converted to a Roth and purchase a new CD.
Permalink Submitted by Alan Spross on Thu, 2008-03-13 21:02
You will have to check with your bank. In most cases, you will probably not be able to transfer the existing CD even though simply designating the current account as a Roth IRA rather than traditional IRA would meet IRS requirements. Banks seem to want to link the CD terms to a specific owner and IRA account # with any changes causing the CD to have to be re issued at current rates and conditions.
You would then either have to incur early withdrawal CD penalties or wait until the CD matures, after which you could have the account converted to a Roth and purchase a new CD.