Retirement Planning/Ira minimum distribution


Hello Mr Iannopollo,
I have a 5yr Ira cd & I am well over 70 yrs old.The cd comes due
in 3 yrs. Can I take the Ira cd & change  it over to a tradional
cd.What would happen to the minimum distribution?
Thank you for your help.

Hi Ella,
An IRA CD is no different than a traditional CD except that it is placed inside an IRA for tax deferral purposes. So banks usually call a CD inside of an IRA an IRA CD. Since IRA monies are not taxed until withdrawal, you can keep the money in the IRA and move it to another CD. If you do this your minimum distribution will not change. If you wanted to put it into a "traditional" IRA where it is not under IRA taxation rules, you would have to pay tax on the entire amount transferred out of the IRA CD. That probably wouldn't make sense at this point.

I hope this answers your question. If not, feel free to ask any other questions you may have. Best of luck!


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David M Iannopollo


I am a professional financial advisor who can assist you with answers on mutual funds, annuities, IRA's, rollovers, qualified and non-qualified retirement plans, retirement planning, educational planning, life, disability and LTC insurances. I can also show you how to take advantage of the stock market gains without the risk of loss!


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