Updated: August 30, 2026

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An IRA certificate of deposit is not one product. It is a CD held inside an IRA wrapper. When it matures, the wrapper stays; only the underlying investment has to be replaced. The IRS treats a trustee-to-trustee transfer between IRA custodians as a non-reportable, non-taxable event under Publication 590-A. The reader problem is not tax; it is choosing where the balance goes next.

Bank maturity notices tend to describe two destinations: renew at the posted rate, or take the cash. The actual menu of documented IRA-to-IRA destinations is larger. This page walks each option in factual mechanics, without preference. As of September 2026, the FDIC national average 12-month CD rate is 1.71 percent and the 60-month is 1.36 percent (FDIC, effective August 17, 2026). Short Treasury bill yields sit meaningfully higher over the same window. That spread is a live input, not a prediction.

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Option 1: Renew the IRA CD at the same bank

What it is. The bank rolls the maturing IRA CD into a new one of similar term at whatever rate is posted that week. The IRA wrapper is untouched. The tax status is unchanged.

How the transfer works. Nothing is transferred. The account number typically stays, the custodian stays, and a new maturity date is stamped. Many banks default to auto-renewal after a short grace period (often seven to ten days) unless you direct otherwise.

Trade-offs. Simplicity. Zero paperwork. Rate is whatever the same bank posts that day. National averages are one data point; individual banks may sit above or below them.

Insurance. FDIC insurance up to 250,000 dollars per depositor, per insured bank, per ownership category (FDIC, Deposit Insurance at a Glance). IRA CDs are aggregated with any other IRA deposits at the same bank under a separate 250,000 dollar limit for retirement accounts.

Tax treatment inside the wrapper. None triggered by the renewal. Interest continues to accrue tax-deferred inside a traditional IRA, or tax-free inside a Roth IRA, per IRC section 408.

Option 2: Shop a new IRA CD at a different bank or credit union

What it is. Same product category, different institution. Some FDIC banks and NCUA-insured credit unions post IRA CD rates well above the national average. You keep the CD structure and the IRA wrapper.

How the transfer works. A trustee-to-trustee transfer. You open the receiving IRA at the new institution and sign a transfer request. The new custodian contacts the old one and moves the funds directly. Nothing is distributed to you. Per IRS guidance on rollovers of retirement plan and IRA distributions, transfers between like IRAs are not reportable and are not counted against the once-per-year rollover limit.

Trade-offs. Paperwork for a potentially higher rate. Timing matters: the new CD locks the day it funds, not the day you sign. If the maturing CD is at a bank with an auto-renewal grace period, request the transfer inside that window to avoid re-locking at the old bank.

Insurance. FDIC for banks, NCUA for federal and most state-chartered credit unions. NCUA share insurance covers up to 250,000 dollars per member, per insured credit union, per ownership category, with a separate 250,000 dollar limit for retirement accounts (NCUA share insurance coverage).

Tax treatment inside the wrapper. None. The transfer is not a distribution.

Option 3: Move to a brokerage IRA (T-bills, brokered CDs, money-market fund)

What it is. A brokerage IRA holds securities rather than a bank CD. Inside it, you can buy short-term Treasury bills, brokered CDs from multiple banks, or a government money-market fund. Each is priced daily against the current interest-rate curve.

How the transfer works. Open a brokerage IRA at a firm that accepts trustee-to-trustee transfers. Submit an account transfer form. The brokerage pulls the balance from the bank IRA. Once cash lands, you place the buy orders yourself, or set them to auto-invest.

Trade-offs. Wider yield menu, more decisions. Treasury bills issued for 4, 8, 13, 17, 26, and 52 weeks are quoted daily on TreasuryDirect. As of August 27, 2026, the 4-week bill investment yield is 3.72 percent, the 26-week 3.91 percent, and the 52-week 4.02 percent (U.S. Treasury). Brokered CDs typically pay simple interest and are traded on a secondary market, which means the price can move if you sell before maturity.

Insurance. Brokered CDs remain FDIC-insured through the issuing bank up to the 250,000 dollar retirement account limit. Treasury securities are backed by the full faith and credit of the U.S. government (not FDIC-insured, because they are direct Treasury obligations). Money-market fund shares are SIPC-protected against broker failure, but the fund itself is a security with no principal guarantee.

Tax treatment inside the wrapper. Interest and gains stay tax-deferred (traditional IRA) or tax-free (Roth IRA). Trades inside the IRA do not generate taxable events.

Option 4: Move to an annuity IRA (SPIA, DIA, MYGA)

What it is. An IRA held inside an insurance contract. Common structures are the single premium immediate annuity (SPIA), the deferred income annuity (DIA), and the multi-year guaranteed annuity (MYGA). Each has a different payout shape, but all can accept an IRA-to-IRA transfer.

How the transfer works. The insurance carrier sets up a new IRA on its custodial side and requests a trustee-to-trustee transfer from the bank. The bank sends the balance directly. Once received, the carrier applies it as the annuity premium under the elected contract terms.

Trade-offs. An annuity is a contract, not a deposit. SPIAs convert principal into a lifetime income stream immediately, giving up liquidity. DIAs defer income to a chosen future age. MYGAs behave like a bank CD in payout shape but sit on an insurer’s balance sheet. The details of each are covered in our SPIA explanation, DIA guide, and MYGA breakdown.

Insurance. No FDIC. No NCUA. Annuity contracts are backed by the issuing insurer and, within limits, by state guaranty associations. Coverage varies by state and by product type. Verify the carrier’s rating and your state guaranty limits before signing.

Tax treatment inside the wrapper. The IRA wrapper still governs. Withdrawals from a traditional IRA annuity are taxed as ordinary income; Roth IRA annuity withdrawals follow Roth rules. Annuity fees inside an IRA do not stack a separate tax; they reduce the return.

Option 5: Move to a self-directed IRA holding IRS-approved precious metals

What it is. A self-directed IRA that holds physical gold, silver, platinum, or palladium meeting IRS purity standards. The wrapper is a normal IRA. The difference is the custodian type and the depository. IRC section 408(m) sets the allowed metal specifications and requires storage at an approved depository.

How the transfer works. Mechanically identical to any other IRA-to-IRA transfer. You open the self-directed IRA at a qualified custodian, sign a transfer request, and the bank sends the balance. Once funded, you instruct the custodian to purchase specific IRS-approved bullion, which is then shipped to the approved depository.

Trade-offs. No FDIC or NCUA. Metals prices move daily. There are dealer markups on purchase, ongoing custodian and depository fees, and dealer bid prices at eventual sale. It is one documented option, not the only one, and it is not appropriate for everyone. Because dealer selection drives most of the cost variance, readers doing due diligence often check independent lists such as the OPRS list of gold IRA dealers to avoid before committing.

Insurance. None from FDIC or NCUA. The depository generally carries commercial insurance on the vault contents. Coverage terms vary by depository; read the storage agreement.

Tax treatment inside the wrapper. Standard IRA tax rules apply. Withdrawals of physical metal are treated as distributions at fair market value. Sales inside the IRA are not taxable events; only distributions from the IRA are.

How the five options compare on liquidity, market-value risk, and diversification

The five paths cluster differently along three axes retirees usually weigh: liquidity, comfort with market-value fluctuation, and the wish to diversify away from a single fixed-income structure. The chart below labels each option against those axes without recommending any one.

Sources: IRS Publication 590-A; FDIC Deposit Insurance at a Glance; NCUA Share Insurance Coverage; IRC section 408. Neutral map, not a recommendation.

None of the five is universally correct. The bank-CD paths (options 1 and 2) prioritize principal predictability and FDIC or NCUA insurance. The brokerage path (option 3) opens a broader short-duration menu at the cost of daily price movement on some securities. The annuity path (option 4) trades liquidity for contractual income. The self-directed metals path (option 5) diversifies the wrapper into a non-yielding asset with dealer and depository frictions of its own.

What every path shares inside the IRA wrapper

Three mechanics are constant regardless of which option is chosen.

First, a trustee-to-trustee transfer between IRAs is not a distribution and is not counted against the once-per-year 60-day rollover limit (IRS, Rollovers of Retirement Plan and IRA Distributions).

Second, the IRA wrapper continues to defer tax on traditional balances and shelter Roth balances from tax on qualifying withdrawals, per IRC section 408.

Third, required minimum distribution rules attach to the wrapper, not to the underlying investment. Moving from a CD to any other option does not reset any RMD age or schedule.

Practical points that apply across all five destinations:

Signing a transfer request does not lock a rate. The receiving institution locks pricing when the funds arrive.
The maturing bank almost always has an auto-renewal window (often 7 to 10 days). Missing it can lock funds at the posted rate for the next full term.
A traditional-to-traditional or Roth-to-Roth transfer is simple. A Roth conversion is a separate, taxable action and is not what these five paths describe.
Beneficiary designations do not carry across custodians automatically. Re-set them on the receiving IRA.

Where Do Retirees Move Maturing IRA CDs: The Documented Options