Municipal Bond Forum
Bonds for an IRA
Q
I think tax-free municipal bonds are a great investment and I have a number of them. But are they right for an IRA? I have to pay taxes when I withdraw from my IRA anyway, as ordinary income. Is there a better “taxable” investment that makes sense for an IRA?
A
James A. Klotz responds:
In a normal fixed-income market environment, taxable bonds will yield more than tax-free bonds, which makes them the preferred investment choice for IRAs and other retirement accounts, as income can accumulate on a tax-deferred basis.
All IRA distributions are subject to taxation.
There are various corporate and taxable muni bonds we recommend for IRA investments.
Start here.
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This report is produced solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This report is based on information obtained from sources believed to be reliable but no independent verification has been made, nor is its accuracy or completeness guaranteed.