12-23 Month IRA

[Mr Nice Guy]

Hey guys. I was inputting some data into Proseries tax software for a client's return, and I noticed they were issued a statement by their bank for interest gained on a "12-23 month IRA."

Is this the same as a CD or are there any differences?

[Petunia 100]

Kind of sounds as though their IRA money is "invested" in a CD with a term of something between 12 and 23 months. It must be a name the bank gives this particular type of CD, since there is nothing in the tax code about a "12-23 IRA".

We use ProSeries, too. Have a happy tax season.

[disneysteve]

A quick Google search turned up several banks and credit unions offering 12-23 month CDs. Apparently, you decide the term and can cash out after at least 12 months or leave it in the full 23 and either take it out then or roll it over.

[Mr Nice Guy]

Thanks Petunia and DS.

Steve, i should have rephrased my question to be " have any of you ever owned one?" I didn't mean to make you google an answer I should have put the effort to find myself, I was more looking for personal experiences.

Thanks!

[scfr]

We have some Roth IRA money "invested" in CDs (different term than your client tho). Some banks and CUs offer higher interest rates on IRA CDs than they do on non-IRA CDs.