The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/since-you-have-a-401k-plan-available-to-you-30513889.aspx

Subject:  Re: Better to hold ETF in IRA or outside of it Date:  1/29/2013  6:15 PM
Author:  CABob Number:  71313 of 75340

Since you have a 401k plan available to you whether you participate or not you are not allowed to claim a tax deduction for contributions to a traditional IRA.
I do not recall reading the Money article you made reference to, but, it sounds as if they were addressing the tax efficiency of various investments. The most tax inefficient investments are best held in a tax deferred account. These would be most bonds and bond funds and REITs. However, almost any investment is suitable in a tax advantaged account.
The most tax efficient investments are better held in taxable accounts. This would include growth stocks, index funds, and many managed equity funds.

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