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URL:  http://boards.fool.com/so-if-i-infuse-the-t-ira-with-1000-and-gain-15-30841283.aspx

Subject:  Re: Funding IRA When Income over Limit? Date:  8/24/2013  11:52 PM
Author:  irasmilo Number:  119080 of 121150

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?

Maybe.

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%.

Ira
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