IRA investing rules

Is it possible to purchase I Bonds in an IRA? I believe that the answer is no because you'd need a custodian and that custodian would have no method of reporting on I Bonds. Can anyone comment?

I found this on the following website:

http://www.jsonline.com/bym/your/aug03/165906.asp?format=print

Q. Is there a way to purchase U.S. Savings Bonds for IRA accounts?

C.D., via the Internet

A. Savings bonds can be held in an IRA. All that is required is an IRA trustee who agrees to use money contributed to the account to make the purchase.

That said, why would you want to put savings bonds in an IRA?

The advantage of an IRA is that earnings accrue on a tax-deferred basis. But that is also how savings bonds work even if they are not in an IRA. No taxes are due on the money earned by savings bonds until the bonds are cashed, and then they are free of state taxes. Likewise, no taxes are due on money earned in an IRA until it is withdrawn. But then, state as well as federal taxes must be paid.

So holding savings bonds in an IRA is tax inefficient.