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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75339  
Subject: Re: IRA capital gains convert to ordinary income Date: 4/14/1998 5:19 PM
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<<And I wouldn't think of suing a person who wears a jester's cap.>>

Probably because you know we'd make the suit something out of Alice In Wonderland or The World According to Garp, right? <g>

<< But it's not hard to project a taxable account doing better than a nondeductible (non-Roth) IRA. If you assume a buy-and-hold strategy with low dividends and only a small amount of turnover, you can get a noticeable advantage in the taxable account.

Before the middle of last year, this was an issue for only those investors in the 31% tax bracket or higher, and not a terribly significant issue until you reached the 36% bracket. But now that capital gains rates are lower it affects everyone. Food for thought.>>

As long as the new capitial gains rates continue, it's definitely food for thought. It pertains to both non-deductible traditional IRAs and 401k contributions beyond the employer's maximum match.


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