Municipal Bond Forum
Munis in your IRA?
Q
Can you use municipal bonds in an IRA?
A
James A. Klotz responds:
Traditionally, municipal bonds were not considered an appropriate investment for qualified accounts (IRAs or pensions), as these accounts enjoy tax-deferred status.
Today, however, because of current supply-and-demand conditions in the municipal bond market, many high quality tax-free bonds are yielding considerably more than their taxable counterparts, making them an ideal investment for IRAs and other qualified retirement accounts.
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The responses provided in this forum are meant to address specific questions posed by investors about their municipal bonds and to provide market insight for our general audience. Please note, your investments, objectives, results and experience may differ significantly. Our answers and any potential strategies discussed should not be construed as a solicitation to buy nor sell any security or investment product. All investing entails risk.