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Author: bob90245 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Roth IRA for Treasury Direct ??? Date: 11/13/2001 12:47 AM
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Hi Board!

This is my first post here and I have a question! I'm very experienced with stocks but have no clue when it comes to bonds. I'm looking to buy bonds when I open my first Roth IRA in January 2002. From the articles that I've been reading, using Treasury Direct is a good idea:

http://www.smartmoney.com/onebond/index.cfm?story=2

http://rehphome.tripod.com/portrisk.html

My question is, How do I open a Roth IRA for Treasury Direct? Has anyone else done this?

-Bob-
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Author: foobar73 Big red star, 1000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2404 of 35400
Subject: Re: Roth IRA for Treasury Direct ??? Date: 11/13/2001 1:14 AM
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My question is, How do I open a Roth IRA for Treasury Direct? Has anyone else done this?

IRAs are trusteed accounts, meaning that they are actually owned by a bank or broker on your behalf. You need to find a bank or broker who is willing to open an account with Treasury Direct and have them do so, of course putting your name as beneficiary of that account. I suspect most of these places will instead direct you to their own bond services, to sell you marked-up bonds on the aftermarket, though.

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Author: Crosenfield Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2405 of 35400
Subject: Re: Roth IRA for Treasury Direct ??? Date: 11/13/2001 7:25 AM
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Treasury direct is a means of buying treasury bonds at auction.
Most brokers will buy treasury bonds at auction for you, for a fee of $40 or so. They will also buy them for you in the secondary market.
Treasury Direct is really for a taxable account rather than for your Roth.
The big goal in a Roth is capital appreciation, which is not taxed. The treasuries aren't going to appreciate particularly--they will mature at face.
I'd suggest an investment in equities for your Roth and keep your bonds including treasuries in a taxable account.
Best wishes, Chris

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Author: bob90245 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2412 of 35400
Subject: Re: Roth IRA for Treasury Direct ??? Date: 11/14/2001 11:52 PM
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Thanks for your replies. According to the Treasury Direct website, accounts can be registered using IRAs:

http://www.publicdebt.treas.gov/sec/secregop.htm

However, when I called their hotline, 800-722-2678, the representative said that Roth IRAs cannot be used. Accounts must be regular taxable accounts.

-Bob-



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Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2414 of 35400
Subject: Re: Roth IRA for Treasury Direct ??? Date: 11/15/2001 10:11 AM
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Both the website and the hotline are correct.

The website makes it clear that an IRA TreasuryDirect account can only be opened if you have a registered financial institution to act as a trustee.

You cannot open an IRA using the Treasury as your trustee, and that's what the hotline rep thought you were asking about.

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