re: Tax gurus: IRA vs. Brokerage Account Distribution

quote:

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My wife and I can contribute $5.5k each to a traditional IRA annually. Should I take that $11K and put it in a brokerage account instead? Understand the brokerage would be subject to capital gains, the IRA ordinary income rates.

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no.


Are you referring to distributions at retirement? You don't pay taxes on the gains... (Every year)

Put in an IRA, preferably Roth IRA if you quality.

ETA: original statement was incomplete. Yes, you pay taxes on the entire distribution amount, but you don't pay ordinary income taxes yearly on gains in the account. Also, you get a tax break on the deposits into the IRA now.

Still, do the Roth if you can.