The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/my-question-can-somebody-help-me-understand-in-25410386.aspx

Subject:  Re: Dividend stocks in your Roth or in a taxable Date:  4/19/2007  11:26 AM
Author:  Hohum77 Number:  56934 of 75340

My question: can somebody help me understand in what kind of account would it be better to buy dividend paying (think the MF Income Investor kind here) stocks? Would they be better placed in a Roth or in a taxable account? I have read articles both in Yahoo Finance and here in MF that take opposite sides.

The thing with investment advice is- "it depends ..." occurs a lot.

So let's hear the opposite sides that cause some confusion.


FWIW, I own shares of a couple of Canadian Royalty trusts (CanRoys) in a taxable account. Why?
1. The Canadian authorities tax the distribution before they are paid out, so that would get lost in a tax-deferred or tax-free account.
2. I can reclaim the taxes paid via the "Foreign Taxes paid" line on my US tax forms (but subject to annual limits - see, a dependency)
3. The distributions get taxed at 15% (subject to holding time - see, another dependency)


Hohum

Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us