The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Funding IRA When Income over Limit?||Date: 8/24/2013 11:52 PM|
|Author: irasmilo||Number: 119080 of 125707|
So if I infuse the T-IRA with $1,000 and gain 15% after a year and withdraw the $1,150, I will be taxed on that amount at say 25% vs. just $150 in a brokerage?
If you make a deductible contribution into a T-IRA, make 15% and then withdraw it after a year and a day, you will save the tax on $1000 this year, but the whole $1150 will be taxed at say 25% next year.
If you make a non-deductible contribution into a T-IRA, you have no other IRA assets, make 15% and then withdraw it after a year and a day, you will be taxed on $150 at say 25%.
If you invested $1000 in a brokerage account, make 15% and sell after a year and a day, you will be taxed on $150 at 15%.
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