jwp@uwmacc.UUCP (Jeffrey W Percival) (10/16/85)
I was in Washington DC the other day, and saw an ad in the Post for double tax-free (Maryland) investments, and the ad went on to say "Great for IRAs!" Now, I'm still pretty naive in investment matters, but why would someone want to put tax free investments into an IRA? Is there ever a case when this is a good idea? -- Jeff Percival ...!uwvax!uwmacc!jwp
mazlack@ucbernie.BERKELEY.EDU (Lawrence J. &) (10/17/85)
>I was in Washington DC the other day, and saw an ad in >the Post for double tax-free (Maryland) investments, and >the ad went on to say "Great for IRAs!" Now, I'm still >pretty naive in investment matters, but why would someone >want to put tax free investments into an IRA? Is there >ever a case when this is a good idea? > >-- > Jeff Percival ...!uwvax!uwmacc!jwp You have the right idea. The kind of stuff that makes the most sense to put into an IRA is the stuff that has a high current rate of taxation. Tax frees make no sense at all. ....Larry Mazlack
gordon@cae780.UUCP (Brian Gordon) (10/18/85)
In article <1563@uwmacc.UUCP> jwp@uwmacc.UUCP (Jeffrey W Percival) writes: >I was in Washington DC the other day, and saw an ad in >the Post for double tax-free (Maryland) investments, and >the ad went on to say "Great for IRAs!" Now, I'm still >pretty naive in investment matters, but why would someone >want to put tax free investments into an IRA? Is there >ever a case when this is a good idea? The only one I can think of is pretty wild -- a tax free with a higher (face) rate of return than a taxable version! If I remember correctly, you would get had on the tax frees in an IRA anyway, since they will be taxed on withdrawl anyway -- i.e. lose their tax-free status! I seem to remember that you are taxed on it all as you take it out, on the assumption that it is all tax deferred money, with no provision I can recall on tax free earnings. The bookkeeping nightmare, of course, will be in those states (like CA) whose contribution limits are out of sync with the feds (e.g. $1,500 vs $2,000), where you have already paid state taxes on part of the principal ... FROM: Brian G. Gordon, CAE Systems Division of Tektronix, Inc. UUCP: tektronix!teklds!cae780!gordon {ihnp4, decvax!decwrl}!amdcad!cae780!gordon {nsc, hplabs, resonex, qubix, leadsv}!cae780!gordon
john@hp-pcd.UUCP (john) (10/19/85)
<<<< < I was in Washington DC the other day, and saw an ad in < the Post for double tax-free (Maryland) investments, and < the ad went on to say "Great for IRAs!" Now, I'm still < pretty naive in investment matters, but why would someone < want to put tax free investments into an IRA? Is there < ever a case when this is a good idea? Sure, If your Selling these investments then having people buy them for an IRA is a Great idea. Perhaps they have found out that the Feds plan to get everyone to sink their money in a IRA and then change the rules so that they are taxable. John Eaton !hplabs!hp-pcd!john