Is it possible to make a secured loan using a CD held in an individual retirement account (IRA) as collateral?

No, you may not use a CD held in an IRA as collateral for a loan. IRS Publication 590 notes that using an IRA as security for a loan is a prohibited transaction.

For resources related to our guidance, please see:

  • IRS Publication 590 (Prohibited Transactions for an IRA include “using it as security for a loan.”)