What to keep in TIRA accounts?

[joesxm3]

The benefit of the IRA is the compounding without having to pay tax every year, but the drawback is that you don't get LTCG rate.

If you have only 7 years before RMD starts, would that affect what sort of assets you should keep in the TIRA and what sort in the normal taxable brokerage account?

Before the zero interest rate environment, I would have thought that CD's might belong in the TIRA since interest is taxed at the full rate anyway.

This year I will be in the 12% bracket and plan to harvest some capital gains at the 0% rate. I am thinking that I will sell the stock in the taxable brokerage and maybe buy back in the TIRA. If I were to do that, would stocks or funds that have thrown off a lot of dividends and capital gains be better off in the TIRA?

If you are comparing paying 15% LTCG versus 22% or 24% normal rate, wouldn't it take a lot of compounding of gains to offset the 7% tax rate difference?

I suppose I might be micro-managing things again. Should I be considering this sort of thing?

Thanks.

 

[RunningBum]

https://www.bogleheads.org/wiki/Tax-efficient_fund_placement is my guide for asset placement. Whether it's worthwhile is up to you, but given a choice, I follow this. If I were to take a big tax hit to sell an asset from taxable to move it to another account, I probably wouldn't.

 

[joesxm3]

Thanks. That looks interesting. I will read it later when I have more time.