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From: johnson@saturn.UUCP (Mark Scott Johnson)
Newsgroups: net.invest
Subject: Re: Interesting IRA Idea
Message-ID: <2331@saturn.UUCP>
Date: Wed, 5-Sep-84 12:15:17 EDT
Article-I.D.: saturn.2331
Posted: Wed Sep  5 12:15:17 1984
Date-Received: Fri, 14-Sep-84 20:29:23 EDT
Organization: Hewlett Packard Labs, Palo Alto CA
Lines: 16

> The only problem with borrowing money to finance an IRA is that
> the IRS code specifically prohibits doing it.  I can't quote from
> the code so I'm not 100% sure, but I'm fairly certain that the IRS
> went out of their way to prevent the exact scenario suggested.

I believe this statement is incorrect. The IRS prohibits borrowing
*from* an IRA or using an IRA as collateral for a loan.  I am aware of
no restrictions on borrowing *to* establish an IRA.  In fact, many of
the financial magazines (such as MONEY) and newsletters regularly
carry articles encouraging people to setup IRAs even if it means
borrowing the money to do so.
-- 
Mark Scott Johnson
CSnet:   Johnson@HP-Labs
ARPAnet: Johnson%Hp-Labs@CSnet-Relay.arpa
USENET:  {allegra,decvax,ihnp4,ucbvax}!hplabs!johnson