An IRA CD is a conservative investment account for people nearing retirement - Business Insider

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If you're close to retirement age, an IRA CD could be a good option — if you're still decades away from retirement, there's probably a better option out there for you

You also may have heard of aBut what's an IRA CD? It's a type of account that combines these two concepts.

An IRA CD locks in your APY for a set amount of time and saves your money specifically for retirement. It can be an option worth considering forAn IRA CD is a type of retirement account that invests your funds in a certificate of deposit . When you open a regular CD, you're putting away money for the near future — with an IRA CD, your CD is part of your long-term retirement savings strategy. CD, and some offer SEP IRAs for people who are self-employed.

This means you'll contribute after-tax dollars to a Roth IRA CD, and you won't pay taxes when you withdraw money. For a Traditional IRA CD and SEP IRA CD, you'll typically contribute money before taxes are taken out, then pay income tax on withdrawals.

 

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