Muni Bond Tax Breaks On The Table In Cliff Talks

Taxes Lost  To Muni Bonds

Taxes Lost To Muni Bonds

 

In a stunning turn of  tables, even the tax-free nature of muni-bonds are on the chopping block in  our current buget turmoil.

Many of our readers are heavily invested in Munis so this article wil lsurely be important, interesting and relevant.

Here’s the Source:

And here’s a key summary:

By exempting municipal bond interest from federal taxes, the government creates an incentive for investors to buy them, which helps hold down the borrowing costs of the states, cities and other entities that issue them. Curbing the exemption would likely reduce demand for the bond

Investors are willing to accept lower yields for municipal bonds because their interest income is exempt from federal income taxes and from taxes in the state in which the bonds were issued. In some high-tax areas, such as California, the bonds are also exempt from local income taxes.s, pushing those borrowing costs higher.

2 replies
    • Nathaniel Pulsifer
      Nathaniel Pulsifer says:

      Yes it is- there may be certain restrictions based on your 401K plan administrator but if you are retired, you can generally do as you wish with the funds, rolling into other qualified vehicles like self directed IRA’s (For Secondary Market Annuities) or a direct rollover into an annuity. give us a call to discuss your situation.

      Reply

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