-- Pre-Tax / Traditional Retirement Account (401k, 403b, IRA, etc.) =
currently at ordinary income tax rates for qualified withdrawals — Roth (401k, 403b, IRA etc.) = currently tax free for qualified withdrawals - Taxable Accounts = currently taxed depending on asset type, etc..
Not exact matches
This will tend to understate the performance of the taxable account in circumstances where long - term capital gains and qualified dividends, which are
currently taxed at lower
rates than
ordinary income, are a component of investment returns, as is the case for investments with significant equity holdings.
Currently, dividends and capital gains (gains due to price change) on investments held in taxable accounts are
taxed at lower federal
rates than
ordinary income.
Ordinary income is
currently taxed at a higher
rate than long - term capital gains.
Because short - term capital gains are
taxed at your
ordinary income tax rate (as opposed to long - term capital gains, which are
currently taxed at a maximum
rate of 20 %), you'll end up paying more
taxes with actively managed funds than you would with index funds, which typically hold their investments for longer periods of time.