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But it is based on my income tax rate, whether withdrawing from a T-IRA or a non- IRA, correct?

I'm guessing that this is in response to Ira's comment about tax rates. What you say is correct, but meaningless. The rate charged on IRA withdrawals is higher than the rate charged on long-term capital gains and qualified dividends from a sale in a taxable account.

So what I considered was that I can trade in an IRA with lower costs than in a brokerage account.

Depending on your investment style there may be room for both. It could well be to your advantage to hold tax-advantaged mutual funds and long-term investments that don't pay dividends in a taxable account while holding investments more likely to throw off ordinary income, e.g., REITs, in an IRA. If all you're doing is short-term trading, then there's no advantage to the taxable account since the rates will be the same.

Rule Your Retirement Home Fool
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