The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/gtgt-the-taxable-event-in-the-tira-occurred-in-21795175.aspx

Subject:  Re: nondeductible IRA - Useless? Date:  12/22/2004  4:13 PM
Author:  ziggy29 Number:  43681 of 78166

>> The taxable event in the TIRA occurred in year 20 for a tax bill of $73,219 with an account value of $466,096, leaving a balance of $392,877. <<

This I agree with.

>> The taxable event in the TIRA occurred in year 20 for a tax bill of $73,219 with an account value of $466,096, leaving a balance of $392,877. The first tax bill in the taxable account is $14,985 paid in year 11. The second tax bill is $30,257 paid in year 20. The account value in year 20 is $401,615, leaving a balance of $371,358. So although the total tax bill is lower in the taxable account by about $28K, the compounded returns on the first tax bill amount of $14,985 over 10 years result in $21,500 more after-tax cash in the TIRA. <<

When I do thi