Personal Finance & Money Asked on July 9, 2021
I was wondering if I could do this, it just seems to make so much sense. You will be earning interest on your I-bond and you won’t have to pay taxes until you take out your money during retirement.
But given that any person can’t just start a roth-IRA except by going through professionals, i was wondering if using a roth-IRA to avoid paying taxes on treasury bond interest even makes any sense. Which firms could do this for you while charging as small a possible fee? I’ve read about self-directed IRAs but I’m more interested in whatever is charged for their services.
Most providers allow you nearly anything in your Roth IRA - you put money (cash) in, but then you can invest it anyway you want on whatever is traded in the market.
You often cannot move shares or other investment objects into it; that depends on each company, and where they come from.
It is incorrect that 'most person cannot start an Roth IRA' - just check online with the major providers. All you need is being 18, having an SSN, and an address.
Of course, you will have full responsibility for all losses, if you make poor investment decisions.
Correct answer by Aganju on July 9, 2021
I am not sure if there is a minimum age limit to make any type of IRA contribution. However you can contribute to Roth IRA or Traditional IRA only if you have earned income that covers your contribution.
A benefit of treasury securities is that they are exempt from taxation by any State and local governments.
The growth of Roth IRA is tax-free, so holding I-bond in Roth IRA is kind of waste. You should hold I-bond in a taxable brokerage account, or taxable bonds in Roth IRA.
Answered by Alpha Huang on July 9, 2021
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