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Brokerage or Roth / kids 529 or Roth
Old 02-19-2017, 09:13 AM   #1
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Brokerage or Roth / kids 529 or Roth

Hi there, I think I should exchange some vanguard funds from my brokerage account to roth to avoid taxes. Any thoughts on what to transfer? (I have a mix of admiral various cap stock funds, international...i didn't know if any were better than others to avoid taxes?)

Part 2...thoughts on funding kids 529 accounts to get state tax break vs. Opening kids roth accounts so they could potentially use the money for other uses if needed? Thanks!

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Old 02-19-2017, 09:19 AM   #2
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On part 2 -- do your kids have jobs? They have to earn the money they contribute to a Roth, so that may not be an option.
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Old 02-19-2017, 09:22 AM   #3
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Nope 2 and 5 year olds...i thought we could fund for them so I guess that's out. for part 1 my thought that led me to Post was for international I assume i have to pay foreign taxes regardless so thought maybe it would be better left in brokerage to help offset us taxes if that is how that works?

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Old 02-19-2017, 06:02 PM   #4
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If you are working, you can contribute to a ROTH at about 6K each for yourself and spouse unless your income is below 12K or too high (very roughly approx 160K).

You really need to provide more info to get better answers, are you working ? , your approx age.
You can contribute to a work 401K plus outside ROTH/IRA depending upon your income.
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Old 02-19-2017, 09:48 PM   #5
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Yes we both work, around age 37...both max 401ks too. Total income around 100k combined.

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Old 02-20-2017, 05:39 AM   #6
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Transfer whatever generates the highest amount of dividend and cap gains distributions.
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Old 02-20-2017, 07:01 AM   #7
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Typically putting tax-inefficient, growth-oriented investments in your Roth is a good idea. If you have all index funds, I'd go with something like a Total Stock Market Index fund or S&P 500 fund. This assumes you plan to reserve these assets for a very long time for your own retirement. If there's a chance you might use these funds for funding college you may want to consider a more balanced fund like Wellington.
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Old 02-20-2017, 03:05 PM   #8
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Not all states give a tax break for 529 contributions. Double-check for the state in which you reside.
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