taxable vs. tax-exempt in a roth ira

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date taxable vs. tax-exempt in a roth ira Pete 06-27-2007  Re: taxable vs. tax-exempt in a roth ira Justin 06-27-2007  Re: taxable vs. tax-exempt in a roth ira PeterL 06-27-2007  Re: taxable vs. tax-exempt in a roth ira rick++ 06-27-2007  Re: taxable vs. tax-exempt in a roth ira catalpa 06-27-2007  Re: taxable vs. tax-exempt in a roth ira Will Trice 06-27-2007  Re: taxable vs. tax-exempt in a roth ira kastnna 06-28-2007  Re: taxable vs. tax-exempt in a roth ira Tad Borek 06-27-2007
Posted by Pete on June 27, 2007, 8:13 am just double checking but isn't it correct that if one has funds in a vanguard taxable money-market (ie. VMMXX) fund in a roth ira, since there are no taxes if held 5 years and after 59.5 years, it makes no difference versus a tax-exempt money-market (ie. VMSXX) ? since this is in a roth ira, there's no issue about the tax either way, so it's only a matter of better return in one money-market account versus the other? or is there something else to be aware of? Posted by Justin on June 27, 2007, 9:18 am Pete wrote on [Wed, 27 Jun 2007 07:13:59 -0500]: > or is there something else to be aware of? Not really. Posted by PeterL on June 27, 2007, 12:09 pm > just double checking but isn't it correct that if one has funds in a vanguard taxable > money-market (ie. VMMXX) fund in a roth ira, since there are no taxes if held 5 years > and after 59.5 years, it makes no difference versus a tax-exempt money-market (ie. > VMSXX) ? > > since this is in a roth ira, there's no issue about the tax either way, so it's only a > matter of better return in one money-market account versus the other? > > or is there something else to be aware of? Don't hold any tax advantaged investment in a tax advantaged account. This is true of either Roth IRA or regular IRA. In a Roth you will not be taxed with you withdraw your funds for retirement. In a regular IRA funds from a taxable MMF or a tax exempt MMF will both be taxed the same way. Posted by rick++ on June 27, 2007, 2:37 pm > Don't hold any tax advantaged investment in a tax advantaged account. > This is true of either Roth IRA or regular IRA. If it had a higher return than a taxabIe investment I would. However nearly all of the tax advantaged investments I am aware pay out less as a taxable investment for the same asset class. Posted by catalpa on June 27, 2007, 5:30 pm > >> Don't hold any tax advantaged investment in a tax advantaged account. >> This is true of either Roth IRA or regular IRA. > > If it had a higher return than a taxabIe investment I would. > However nearly all of the tax advantaged investments I am aware > pay out less as a taxable investment for the same asset class. > Be very careful about only focusing on returns. If a tax advantaged investment has a higher return than a taxable investment in the same asset class it has a much higher risk. High risk investments don't belong in an IRA. Similar Threads Posted Regular or taxexempt investing? March 30, 2007, 4:12 pm After-tax IRA vs. taxable account April 10, 2007, 8:55 am Taxable/tax-advantaged allocations October 29, 2007, 7:20 pm Are penalties from a lawsuit settlement taxable? December 9, 2007, 3:45 pm Tax free, deferred, or taxable accounts for 30 yr old retirement. January 30, 2007, 7:12 pm roth ira April 30, 2008, 5:06 am roth ira November 20, 2008, 3:31 pm Tradtional IRA/SEP to Roth November 6, 2006, 5:14 pm Roth 401K? January 2, 2007, 5:04 am Roth 401k vs. Roth IRA vs. 401k January 8, 2007, 5:00 am