USA Partial Transfer of Traditional IRA Funds

[djgall1940]

Hello

I am 73 years old and retired. I have some of my money in a traditional IRA account in one institution and I would like to transfer part of the funds to another institution and get an IRA CD. I have been taking the minimum distributions as required from this account, I need to know if this opening of an IRA CD is a do able. I am not clear on the regulations at my age and also how future minimum distributions are handled.

Thanks

DJG

 

[kirby]

You can certainly move this to another institution and put it into a CD. Choose a larger well-established bank or credit union as they will have staff that know how to do this. Make sure that they are mindful that your CD has to allow for the minimum distributions. Also shop for best rates and ask them to estimate their annual fees. If you have over $250K (which is the FDIC insurance limit) make sure they provide for this (they can "broker" the amount with other banks but -again -ask what the related fees will be). And do NOT withdraw the funds yourself from the old place - let the new institution arrange for that so that you do not expose the funds to being taxed as income.