Understanding IRA CDs
In an IRA CD, the IRA funds are invested in a CD, as opposed to being invested in stocks or bonds. Like with any IRA, the advantage is that you do not pay tax on your money as it grows. Depending on whether you have a Traditional IRA or a Roth IRA, you will either pay taxes before you contribute your money or after you withdraw the money from the account.
Traditional IRA vs Roth IRA