Quote:
Originally Posted by Rain Man
So by holding it in an IRA, you end up paying a higher tax on the gains.
Now, it's still better to put it in an IRA because it's pre-tax money going in, which gives you a bigger investment, and the taxes are deferred for many years, but I'd never thought about the fact that you take a bigger bite coming out.
Am I thinking about this right? Do I have any wrong assumptions?
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Leaves out all the years of dividend tax drag though.
On the other hand, if you retire early or only have social security, you might be able to use 0% LTCG rate. I believe It goes up to 100k for a couple with standard deduction