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From: gordon@cae780.UUCP (Brian Gordon)
Newsgroups: net.invest
Subject: Re: tax-frees in IRA??
Message-ID: <1485@cae780.UUCP>
Date: Fri, 18-Oct-85 16:21:26 EDT
Article-I.D.: cae780.1485
Posted: Fri Oct 18 16:21:26 1985
Date-Received: Tue, 22-Oct-85 05:40:56 EDT
References: <1563@uwmacc.UUCP>
Reply-To: gordon@cae780.UUCP (Brian Gordon)
Distribution: net
Organization: Tektronix, Inc. (CAE Systems Division), Sunnyvale, CA
Lines: 23

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
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