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To: Horgad who wrote (203250)	11/7/2002 4:58:10 PM
From: Luis Bardi	Read Replies (1) \| Respond to of 436258

What I understand is that everything that you take out of an IRA (or SEP-IRA, or...) exits as cash, and it's taxed at your current "income" tax rate. (Meaning that is taxed at the same rate as if it were a salary) (The consequence being that Munis have NO tax advantage in an IRA) Hope this helps...

To: Horgad who wrote (203250)	11/7/2002 5:10:48 PM
From: patron_anejo_por_favor	Respond to of 436258

<<Does anybody happen to know the consequences of investing in tax free municipal bonds using a tax deferred retirement type account?>> Why would you want to do this? The main benefit of munis is exemption from Federal income taxes, you don't need them in a tax-deferred vehicle (and can probably get higher yields from other debt instruments to replace them in the retirement account).

To: Horgad who wrote (203250)	11/7/2002 5:12:03 PM
From: benwood	Respond to of 436258

It's the type of IRA which defines whether or not your distributions are taxed, not how you invested along the way. So in all cases you would be better off with taxable bonds (in other words, mini bonds = bad idea). Ignoring penalty situations: Distributions from a Roth IRA are tax free; Distributions from traditional IRA are taxed as ordinary income (or some fraction thereof, if some of the contributions were taxed).

To: Horgad who wrote (203250)	11/7/2002 9:27:17 PM
From: Knighty Tin	Respond to of 436258

Horgad, In some cases, Muni closed end funds are competitive with taxable Closed end funds. The only reason for buying them in a tax deferred account is because they should widen that spread over time. But, since you can't short the high quality CEFs in an IRA, the concept is less viable.