Term Life
An Alert for People Who Use CDs for Their IRAs
Submitted by Ferguson Financial Inc. on December 13th, 2014
A recent tax court ruling now limits the frequency of IRA rollovers.
Do you like to shop around online for the best CD rates? Do you have a habit of moving certificates of deposit from bank to bank in pursuit of better yields? If you do, you should be aware of an obscure but important IRS decision, one that could directly impact any IRA CDs you own.
Pay attention to the new, tighter restrictions on 60-day IRA rollovers. This is when you take possession of some or all of the assets from a traditional IRA you own and deposit them into another traditional IRA (or for that matter, the same traditional IRA) within 60 days. By making this tax-savvy move, you exclude the amount of the IRA distribution from your gross income.1
