No. of Recommendations: 1
Since no capital gains are paid on IRA investments, is it be possible to invest traditional IRA funds into tax-advantaged/tax-free securities to reduce/avoid paying tax on a traditional IRA to Roth IRA conversion?
Print the post Back To Top
No. of Recommendations: 0
Greetings, GeraldGarcia, and welcome. You asked:

<<Since no capital gains are paid on IRA investments, is it be possible to invest traditional IRA funds into tax-advantaged/tax-free securities to reduce/avoid paying tax on a traditional IRA to Roth IRA conversion?>>

You will not really avoid income taxes that way because you lose the tax advantage of those investments within the IRA. ANY gain in a traditional IRA regardless of source will be treated as and taxed as ordinary income when you withdraw that money in retirement or during a conversion to a Roth IRA.

Regards..Pixy
Print the post Back To Top
Advertisement