Do I have to pay taxes on the interest earned in a money market mutual fund...? -

if I don t withdraw it and just transfer it over to a mutual fund for my IRA? In other words, is the interest taxed before it goes into the IRA? I m just using the MM fund as a holding area for funds to go into the IRA|::::|If I understand the question correctly yes. Within the IRA no. That is the tax advantage of the IRA.|::::|Yes, unless it s a tax-exempt fund. The amount you quot;transfer overquot; is your IRA contribution. You need to hold the fund WITHIN your IRA. Then you won t be taxed until you withdraw it.