08-26-2015, 07:09 AM
Traditional IRA:
Pro: lowers your tax base now, no taxes on your dividends over the years
Con: For the most part, you cant touch it until you are 59.5 years old. You do get taxed on the distributions
Roth IRA:
Pro: While it is post tax money, you don't get hit with any other taxes on your capital gains and dividends
Con: For the most part, you cant touch it until you are 59.5 years old.
Taxable Account:
Pro: You can access it at any time if needed. You can sell losers for tax harvesting
Con: You are taxed at 15% (for most people) on your dividends. Harder to sell out from a winning stock unless you want to get hit with a big capital gains tax
Pro: lowers your tax base now, no taxes on your dividends over the years
Con: For the most part, you cant touch it until you are 59.5 years old. You do get taxed on the distributions
Roth IRA:
Pro: While it is post tax money, you don't get hit with any other taxes on your capital gains and dividends
Con: For the most part, you cant touch it until you are 59.5 years old.
Taxable Account:
Pro: You can access it at any time if needed. You can sell losers for tax harvesting
Con: You are taxed at 15% (for most people) on your dividends. Harder to sell out from a winning stock unless you want to get hit with a big capital gains tax