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From: joec@u1100a.UUCP
Newsgroups: net.invest
Subject: Re: Interesting IRA Idea
Message-ID: <727@u1100a.UUCP>
Date: Wed, 5-Sep-84 09:00:26 EDT
Article-I.D.: u1100a.727
Posted: Wed Sep  5 09:00:26 1984
Date-Received: Sun, 16-Sep-84 04:09:02 EDT
Organization: Bell Communications Research, Piscataway, NJ
Lines: 18

{eat me}
Pete LaMaster says :
  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 agree with him, but consider the following:
  This year, suppose I am going to Europe for vacation and I plan to spend
$2000 doing it.  Rather than spend the $2000 I put aside for vacation,
I borrow $2000 for the trip, and put my $2000 vacation money in an
IRA.  In essence, I borrowed the money to finance my IRA.
 
Can such a scheme/scam get by the IRA rules (which I don't know too much
about anyways).  Just borrow money for other things, and put the money
you would have spent into an IRA.
 
Joe Carfagno		{allegra,pyux??,ihnp4}!u1100a!joec