If your IRA holds a CD and you cash it in early, the bank may charge you an early withdrawal fee. Because the fee merely reduces the funds within your IRA, there’s no tax deduction. If you take a distribution from your IRA related to the CD, you are subject to usual IRA distribution/taxation rules. Thus, if you’re under age 59½, there’s a 10% early distribution penalty from the federal government (unless you qualify for a penalty exception). This penalty is not tax deductible.
For 2007, a high deductible health plan is a health plan with an annual deductible that is not less than $1,100 for self-only coverage or $2,200 for family coverage, and with annual out-of-pocket expenses that do not exceed $5,600 or $11,200, respectively.