The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Dividend stocks in your Roth or in a taxable||Date: 4/19/2007 9:18 PM|
|Author: CABob||Number: 56980 of 73907|
High dividend paying stocks are good to hold in a Roth IRA since the dividends and gains will not be taxed.
If they are held in a taxable account you have the disadvantage of the dividends being taxed now. The good news is that they are taxed at a lower rate, assuming they are qualified dividends.
OTOH if they are held in a traditional IRA you avoid the tax now but eventually they will be taxed at ordinary income rates.
As they say, "It depends."
|Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|