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For those with both Roth and Traditional IRAs, asset types?
Old 11-23-2016, 08:30 PM   #1
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For those with both Roth and Traditional IRAs, asset types?

Sorry if this is a tired question but hard to use as a search item.

For those of us that have both Traditional and Roth IRAs, what type of investment should one concentrate on each account related to no tax at withdrawal time vs. being taxed as regular income without LTCG benefits on traditional?

Thanks in advance.
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Old 11-23-2016, 08:36 PM   #2
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Since any gain in a tIRA is, upon withdrawal, taxed at ordinary rates it's generally considered wise to put one's bond allocation in a tIRA (since bond interest is taxed at ordinary rates even outside a tIRA).
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Old 11-23-2016, 09:28 PM   #3
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This Bogleheads wiki page addresses your question and more very well. Excellent guide that has served me well.
https://www.bogleheads.org/wiki/Tax-...fund_placement
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Old 11-24-2016, 05:38 AM   #4
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Investments with income that is taxed at the highest rates is what should be in the traditional IRA.
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Old 11-24-2016, 05:52 AM   #5
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Also, since a Roth IRA is never taxed, I'd put the investment with the higher expected return there.
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Old 11-24-2016, 04:50 PM   #6
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That was exactly the info I was after, Thanks!
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