- 1). Open an IRA with a brokerage firm. This is a simple account to open, and a customer service representative from your firm can guide you through the process.
- 2). Review your current CD statement and look for the CD's maturity date. This is the day the CD contract ends and your money is returned. Also look for the penalty rate of closing your CD early.
- 3). Wait until the maturity date of your old CD. While closing your CD does not create a tax liability, your bank could charge an early withdrawal penalty on your account funds.
- 4). Contact your bank and let it know you do not want to immediately roll over your CD. This prevents the bank from automatically depositing your CD balance into another taxable CD.
- 5). Tell your bank that you want to roll over your CD into an IRA. Fill out your bank's CD transfer paperwork. List the brokerage firm managing your IRA.
- 6). Review your IRA account statement to confirm that a CD has been opened in your IRA.
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