Quote:
Originally Posted by kepp
So for a 401k, the contributions are pre-tax, but you get taxed when you take distributions...and for a Roth IRA, the contributions are post-tax but you are not taxed on the growth at all as long as you take qualified distributions?
What about an ordinary trading account? Obviously the contributions are post-tax. Do you get taxed on the growth every year?
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You do get taxed on growth in a standard brokerage account, but the tax rate on that growth is less than your normal income tax rate.