2007-11-05 13:10:56 · 4 answers · asked by Jyoti 1 in Business & Finance ➔ Investing
no,taxes are defered till you withdraw from the ira and then only on the total accumulated value not the gains captured yearly in the fund.. tax free products traditionally pay lesser return than taxable but are useful for people in higher tax brackets who must report gains yearly at tax time. as ira defers taxes till laterand there are no immediate tax consequences. so go for the returns now.
2007-11-05 13:21:45 · answer #1 · answered by jereid45 2 · 0⤊ 0⤋
No, tax free instruments pay less interest. An IRA is already tax free.
2007-11-05 21:20:07 · answer #2 · answered by Anonymous · 1⤊ 0⤋
No. Tax-free instruments typically yield less (before taxes) than their taxable peers and you lose the tax-free advantage in a conventional IRA.
2007-11-05 21:46:24 · answer #3 · answered by npk 7 · 0⤊ 0⤋
This is rare.... But every answers you've gotten is 100% correct.
It makes no sense to invest in a tax free instrument in a tax deffered account.
2007-11-05 22:28:46 · answer #4 · answered by Common Sense 7 · 0⤊ 0⤋