08-25-2015, 04:03 PM
(This post was last modified: 08-25-2015, 04:16 PM by hendi_alex.)
Over time I'm planning on positioning tax advantaged holdings in my cash account and holding investments such as REITS, preferred stocks, bonds, other non qualified in the IRA. It makes me sick to realize capital gains or receive tax advantaged dividends in the IRA, and then proceed to pay 32% combined Fed and State taxes on these gains (as opposed to tax advantaged 15% rate in the taxable account) when taking a distribution.
I think that situation will eventually apply to you for the traditional IRA. I'm assuming there are no taxes due on distributions from the Roth so no problem there.
With what appears to be a very strong savings program, you are probably in a higher marginal tax bracket. IMO anyone who is not maxed out in 15% bracket would be better to pay the taxes and save in a taxable account. After deductions we often stayed inside the 15% bracket. I saved in a deferred account figuring that taxes would be lower at retirement. Now most often were are paying 32% to take those dollars out of the deferred account. So for that part of the savings that could have been taxed at the lower bracket, deferral was a losing game.
I think that situation will eventually apply to you for the traditional IRA. I'm assuming there are no taxes due on distributions from the Roth so no problem there.
With what appears to be a very strong savings program, you are probably in a higher marginal tax bracket. IMO anyone who is not maxed out in 15% bracket would be better to pay the taxes and save in a taxable account. After deductions we often stayed inside the 15% bracket. I saved in a deferred account figuring that taxes would be lower at retirement. Now most often were are paying 32% to take those dollars out of the deferred account. So for that part of the savings that could have been taxed at the lower bracket, deferral was a losing game.
Alex