In microsoft.public.money, donh wrote:

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http://www.moneysavingfreetips.com/i...-accounts.html

So the problem is finding the custodian. What would be easier to
find is a mutual fund company to hold the IRA account that will then
let you invest in a fund that invests in TIPS

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

Jon's method works too. After 59-1/2 you will not have a penalty,
but you will pay income tax on the money you take out. Putting that
money into a different IRA will eliminate the current taxation.

One downside is that while both TIPS and savings bonds are normally
exempt from state income tax, that will not be the case for funds
you take out of an IRA, even if part of the money in the IRA came
from TIPS or savings bonds.

Penalty ??? Depends on what you mean ?? Is it an after TAX IRA

You can cash out the IRA in which case all the proceeded get treated as
income for the year you cash it. Thus, you have to pay tax on it but there
is no penalty at your age. Then you could purchase I bonds with the
proceeds.
Depending on who is the custodian of the IRA you may be able to buy almost
any type of investment as part of your IRA in which case you continue to
defer the tax obligation . As an example if Vanguard was the custodian you
could buy (TIPS) Treasury Inflation Protected fund which is similar to I
Bonds.

You can transfer your IRA from one custodian to another and continue to
defer the taxes.

--
Jon Hildrum
DTS MVP
Jon_Hildrum[at]msn.com
www.hildrum.com
"donh" <donovanharper[at]earthlink.net> wrote in message
news:n_ang.11303$o4.8088[at]newsread2.news.pas.earthlink.net...
- quote -

Help! I have a small IRA I would like to rollover probably into an
I-bond.....is this possible without penalty? I am retired and in my late
60's. Thanks.