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Subject:  Re: I Bond Fixed Rate--November, 2001 Date:  8/18/2001  2:55 PM
Author:  jrr7 Number:  1981 of 36397

I-bonds have no intermediate cash flows and are taxed as such.

TIPS have intermediate cash flows (interest payments) and are taxed on them, as well on the phantom income of the principal adjustment.

You'd have to hold the TIPS in an IRA in order for them to be even close to I-bonds.

I'm stocking up on them now.
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