Posted by Bruce Wilson on February 09, 2002 at 21:51:02:
Mike,
You didn’t mention what type of IRA.
If you have a Roth IRA, it is not taxable.
If you have a traditional IRA, it is taxable as ordinary income when withdrawn.
You can contact the folks at midoh.com for details. They can set everything up for you and explain the details.
Bruce Wilson
Question about tax liens and IRA - Posted by Mike Ordway
Posted by Mike Ordway on February 09, 2002 at 13:32:06:
Hello, my name is Mike and I’m an 19-year old and I’m trying to learn about investing right now. I have a question.
I’ve heard that it’s possible to use IRA money to invest in tax liens. The question I have is this: if I invest the interest I receive from tax lien-invested IRA money will the interest be exempt from capital gains taxes? That is, if I received 15% interest from a tax lien purchased using IRA money (which itself is exempt from capital gains, I believe), and I decide to invest that 15% in another tax lien that will give me 16% interest, then will I have to pay capital gains on the 16% interest I receive?
If anybody can help me out here, I’d greatly appreciate it.