Never tried it with a CD but I would think one should be able to do an in-kind transfer of a CD from your tIRA account to your Roth account, especially at the same brokerage.
Can you clarify on withholding taxes from settlement? Do you mean make and estimated tax payment from your settlement account? Not sure how one does that.
CD transferred in-kind as you mentioned. It will transfer after today's trading. I'm WH from the tIRA settlement fund at 12% of CD value. I was able to mimic the 2024 tax return in the Taxslayer training section. The benefit of being an AARP tax aide volunteer. We should get a small refund next year.