Originally Posted by nun
Approaching ER do people rollover part of their IRA/401k into an IRA with a bank that offers CDs rather than buying the CD with after tax funds?
We use taxable accounts for our CDs because they're half of our two-year cash stash. The other half is in a money market.
I know that the conventional wisdom is to put bonds in tax-deferred accounts, but I think many retirees keep all their cash asset allocation in taxable accounts just to avoid the hassle of 72(t) if they need to spend some cash during a recession. The only cash we have in our Roth IRAs is a dividend waiting for a reinvestment opportuity.
Of course after age 59 1/2 then cash could be held in a CD in an IRA... for example with PenFed. Navy Federal Credit Union also has special rates & terms for IRAs, so perhaps other credit unions do likewise.