401 k into a cd

[gman]

Taxpayer cannot transfer a 401 k into a CD, but an IRA can be invested in a CD, RIGHT?

[ATSMAN]

Taxpayer cannot transfer a 401 k into a CD, but an IRA can be invested in a CD, RIGHT?

If the 401(k) plan has CD for fixed income investment then yes. But if you are talking about rolling the money from a 401(k) to a CD that is outside the 401(k) or IRA then can't do.

IRA can have a CD as an investment vehicle just like a 401(k).

So to maintain tax deferral status the CD must be within a 401(k) or IRA.

[Burke]

If he "transfers" a 401(k) into a non-IRA CD at a bank, that is not a transfer. It would be a taxable distribution. If he sets up an IRA at a bank (or other institution), then he could transfer 401(k) funds into it. They often invest the money in CD's.