We made the decision to sell our Individual Retirement Account (IRA) portfolio to Axos Bank, effective 9/21/2026. We will no longer be acting as the custodian for your IRA after this date. Axos Bank will become the new custodian for your IRA unless you choose a different option by following the instructions provided below—see “What are my other options and when do I need to make a decision?” Axos Bank is prepared to manage your IRA account(s) and provide the service you expect.

 

Axos Bank, Member-FDIC, has served customers for over 25 years, with more than $29 billion in assets. Axos also offers IRA deposit products for customers looking to save for retirement. Through Axos Bank’s secure online and mobile banking platforms, you'll have 24/7 access to your account, transfers, and customer support whenever you need it.

 

Axos Bank has created a brand-new IRA Savings account and IRA CD account for Discover IRA customers. These are exclusive products that are only available to Discover IRA customers as part of the transition and will not be advertised to the public.

Your Discover IRA CD will transition into an Axos Bank IRA CD. Your account type, balance, accrued interest, APY, term, maturity date, beneficiary designations and FDIC insurance coverage will all remain unchanged.

Your Discover IRA Savings account will remain FDIC-insured as it transitions into an Axos Bank IRA Savings account. Your beneficiary designations, account balance and interest rate at the time of transition will remain the same. Similar to Discover, Axos’ IRA Savings product is a variable rate product and rates are subject to change.

 

If you’d like your IRA transferred to Axos Bank, no action is required. Discover will automatically transfer your IRA to Axos Bank on 9/21/2026. Access to your IRA at Axos Bank will be available online by 9/21/2026. This is a bank-to-bank transfer and is not a taxable event. Axos Bank will mail a welcome packet with a deposit account agreement, which includes a schedule of fees, and other pertinent documents around 8/10/2026 for your review to help you make an informed decision.

We're working closely with Axos Bank to help make your transition as smooth as possible. Throughout the process, we’ll reach out by email or letter when there is more information to share. You'll also hear directly from Axos Bank about your new account terms and how to get started with them. 

 

In the meantime, you can keep managing your account using the Discover website and app, or by calling 888-204-8966. We recommend you review your contact information to ensure timely delivery of information. 

 

As the 9/21/2026 transfer date approaches, we will have restrictions which will impact your ability to access certain transactional and non-transaction services so please plan accordingly. Below are some of the key restrictions to make note of. 

 

Starting on 8/21/2026:

• Additional IRA contributions including requests for rollovers, transfers, conversions, recharacterizations, etc. will no longer be accepted. Any checks received on or after this date will be returned. 

• New inherited IRA plans will no longer be opened. 

 

Starting on 9/12/2026:

• Distribution requests will no longer be accepted.

• Changes to beneficiaries can no longer be made at Discover.

If you’d like to transfer your IRA to a different financial institution, please contact the receiving financial institution and ensure we receive the required documentation no later than 9/11/2026 at 11:59 pm ET. If you have more than one IRA account that you’ll be transferring, a separate form may be required for each account. This is an IRA transfer and is not a taxable event.

 

If you’d like to take a full distribution, please complete and submit our distribution form no later than 9/11/2026 at 11:59 pm ET. If you have more than one IRA account that you’ll be requesting a distribution for, a separate form will be required for each account. For guidance on potential tax implications of a distribution based on your tax filing status, we encourage you to consult a tax professional.

 

You can complete your distribution request in one of the following ways:

• Log into Discover.com, go to “Help”, click “Help Center”, click “View All Forms”, and select the IRA Request for Distribution relevant to your plan type. Then, follow the prompts and submit your request online.

• Download the IRA Distribution Form at discover.com/forms-docs, complete it, and submit it to us.

 

You or your financial institution, as applicable, can submit your transfer or distribution paperwork via: 

Upload:                discover.com/upload

Fax:                       224-813-5227

Regular Mail:       Discover, P.O. Box 30418, Salt Lake City, UT 84130

Overnight Mail:   Discover, 5420 West 1730 South, Salt Lake City, UT 84104

 

Once we receive your correctly completed form(s), we’ll process the request and close your IRA.

 

Important reminder: Correctly completed form(s) need to be submitted no later than 9/11/2026 at 11:59 pm ET. Requests received after this date will not be accepted, and you’ll need to resubmit your request with Axos Bank after your account has transferred.

 

Keep in mind that if you have more than one IRA account, you can select a different option for each one. For IRA CDs, if you choose to transfer your IRA to a different financial institution or take a full distribution, we/Discover will not assess any early withdrawal penalties.

 

For advice on which option(s) to choose, please consult a tax professional or financial advisor.

If your total IRA plan balance is $100 or less on 9/11/2026 at 11:59 pm ET, your plan will not be transferred to Axos Bank and will be closed. We'll mail a check to your address on file, if applicable. If you don't take action and we close your account, federal taxes will be withheld generally at the rate of 10% and any state taxes will be withheld according to your state's laws. Don't forget that with any plan, an IRS penalty may be assessed for early distributions if you don't act before we close your account. We aren't liable for any IRS penalties related to closing your account. For more details, please refer to the notice that we sent you at the end of July regarding this transfer.

 

Following the transfer of IRAs to Axos Bank, any scheduled distributions (and associated tax withholdings) will continue. Recurring distributions currently sent to a Discover bank account will be processed as Automated Clearing House (ACH) transactions and may experience extended processing times. 

 

Final Discover IRA plan tax forms will be mailed no later than 1/31/2027.