No. of Recommendations: 0
I should be able to figure this out but haven't had much luck so far and can't find an answer with a search of this board.
Unfortunately the only type of account for which I qualify is a regular non-deductible IRA. I have not seen much advantage to this type of account over a growth
oriented, buy and hold approach in a taxable account. Can any one provide any estimate of the magnitude of benefit of defering the tax payment over paying scant
amounts on dividend and occasional 20% cap gains as you go.
Thanks in advance

You have it correct, you won't find an answer. It depends on a lot of personnel factors and is a close call. A taxable account would be taxed at 20% capital gain and an IRA at, lets say 28+% regular income tax. The only other item to consider is that the regular IRA could be rolled to a ROTH in the future and you could leave that account to your heirs. That could be an estate planning benefit.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.