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-   -   For those with both Roth and Traditional IRAs, asset types? (https://www.early-retirement.org/forums/f28/for-those-with-both-roth-and-traditional-iras-asset-types-84285.html)

DanP 11-23-2016 09:30 PM

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.

GrayHare 11-23-2016 09:36 PM

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).

pixelville 11-23-2016 10:28 PM

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

DrRoy 11-24-2016 06:38 AM

Investments with income that is taxed at the highest rates is what should be in the traditional IRA.

RunningBum 11-24-2016 06:52 AM

Also, since a Roth IRA is never taxed, I'd put the investment with the higher expected return there.

DanP 11-24-2016 05:50 PM

That was exactly the info I was after, Thanks!


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