Replying to a message of James Adams to Tony Ingenoso:

 JA> From: James Adams 

 >> Quite a few indirectly through retirement and mutual funds.
 >> 

 JA> Except most retirement accounts are already tax free.

Ordinary retirement accounts are made with pre-tax income and the interest
on them is untaxed ... until you start withdrawing the money.  Income tax
is due on the money withdrawn from ordinary IRAs.  Hopefully one will be in
a low income bracket when withdrawing the money.

OTOH, Roth IRAs are funded with money on which the income tax has already
been paid.  Unless I'm mistaken, they also grow tax free.  Roth IRA's are
*not* taxed upon withdrawal, since the income tax on the money has already
been paid.

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