Bandb
Oct 9 2001, 12:33 PM
Is it possible to purchase government securities (t-bills, bonds) inside an IRA and have the coupon payments made outside the IRA, without it being considered a (taxable) distribution from the IRA?
No.
The bonds are held by the IRA, not you. Any coupons must go to the bondholder. Diverting them to you creates a distribution.