Comments on: TIPS for your IRA or 401(k) http://advancedpersonalfinance.com/tips-for-your-ira-or-401k/ Moving beyond the basics Thu, 04 Dec 2008 06:16:36 +0000 http://wordpress.org/?v=2.2.2 By: TFB http://advancedpersonalfinance.com/tips-for-your-ira-or-401k/#comment-29 TFB Sat, 14 Apr 2007 06:12:56 +0000 http://advancedpersonalfinance.com/tips-for-your-ira-or-401k/#comment-29 TIPS pay inflation adjusted interests every six months, but the inflation adjustment on the principal is retained, not paid out. In a taxable account, the retained inflation adjustment, although not paid out, is counted as taxable income. You CANNOT buy TIPS through Treasury Direct (TD) for an IRA. TD only allows taxable accounts. For an IRA, you must use a broker. You can buy TIPS and other Treasurys at auction through Fidelity and Schwab for free. TIPS pay inflation adjusted interests every six months, but the inflation adjustment on the principal is retained, not paid out. In a taxable account, the retained inflation adjustment, although not paid out, is counted as taxable income.

You CANNOT buy TIPS through Treasury Direct (TD) for an IRA. TD only allows taxable accounts. For an IRA, you must use a broker. You can buy TIPS and other Treasurys at auction through Fidelity and Schwab for free.

]]>