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For my portfolios, it basically makes no difference because all of my dividend paying companies are held in-side tax deferred or tax-exempt accounts

So when you take them out, they are taxed as regular income. Why not move dividends outside where you only (used to) pay 15%?
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So when you take them out, they are taxed as regular income

Not Roth IRAs
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Not Roth IRAs
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Roth IRAs are not tax deferred accounts
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Not Roth IRAs
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Roth IRAs are not tax deferred accounts


Er... no, iirc you pay the tax on Roths before putting the (then taxed) money into the IRA.

THUS NO TAX LATER.
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PuddinHead42,

I have them in taxable, trad and Roth accounts. Unfortunately, most are in trad IRAs simply because that is where most of our money is. Not much I can do about that part now.

It would have been nice if our lawmakers had thought up the Roth IRA in the 1970's instead of the trad IRA but it just took them a little too long.

Gene
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DD, if I am not mistaken we are discussing tax treatment of dividends. In a Roth dividends are not taxed,
but in a reg IRA ones dividends are taxed as income (not dividends) when a withdrawal is made
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DD, if I am not mistaken we are discussing tax treatment of dividends. In a Roth dividends are not taxed, but in a reg IRA ones dividends are taxed as income (not dividends) when a withdrawal is made

Are you saying dividends earned in a ROTH are not taxed when the money is withdrawn?
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Are you saying dividends earned in a ROTH are not taxed when the money is withdrawn?

Isn't that the whole point of a ROTH? You pay tax on the money before you put it in, and you don't pay tax on anything you take out. The inverse of a Traditional IRA - there you don't pay tax on what you put in, but you pay tax on everything you take out.
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Isn't that the whole point of a ROTH? You pay tax on the money before you put it in, and you don't pay tax on anything you take out.

That's what I thought I said, but I seemed to be getting some disagreement.

Me:
iirc you pay the tax on Roths before putting the (then taxed) money into the IRA.
http://boards.fool.com/not-roth-iras-roth-iras-are-not-30418...

Perhaps I should have said: iirc you pay the tax on Roths before putting the (then taxed) money into the ROTH IRA?
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Are you saying dividends earned in a ROTH are not taxed when the money is withdrawn?
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YES :-)
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But you pay tax on dividends and everything else you take out of a reg. IRA.
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The initial post was relating to dividends. So, regardless of when or how much you put into a Roth IRA and what tax you paid it has no bearing on the dividends earned later - they are not taxed in the Roth or when you take the money out.
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Just as a point of reference, my dividend income for Dec will be nearly doubled for the month by the special dividends and early payments.

CGNX is paying $.11 Q3 (normal Dec), $.11 Q4 (early) and a $1.00 special. COH moved their announced div from Jan 2 to Dec 27, HAS would have been in Feb and a few others that have decided to pay early.

I have only 4 declared Jan payments now with a fifth that has not declared yet. Last year, I had 10 companies pay in Jan.

I wonder how much of this is driven by management with large holdings, since a lot of those are held in taxable accounts?

As long as I get it paid and it doesn't cause harm to the business, it is fine with me.

Gene
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