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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: glenn_a who wrote (33449)	5/28/2005 11:20:51 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

typically one wants to avoid being taxed (witholding tax) on fixed income in a tax-sheltered acct. i don't know if Canada does it, but i believe Australia and NZ have a 15% witholding tax. if this tax occurs in a taxable acct, then one can claim a tax credit. in a tax-sheltered acct, the tax is paid but one doesn't get the tax credit. if you're Canadian this may be an irrelevant issue if the presumed witholding tax is only taxed on foreigners (it's a foreign tax credit i'm talking about). my point here is that, as a US investor, i don't want to hold such income which has witholding tax in an IRA since the tax credit is lost. that is why i only buy Aussie and NZD fixed in a taxable acct. however, Eurobunds do not have this witholding tax last i checked, so i would be willing to hold them in an IRA.