Taxes for Traditional IRA vs long term capital gains
I thought I had a good understanding of IRAs, but recently was questioning taxes upon distribution.
I understand that traditional IRA isn’t taxed on gains, but you get taxed when you take it out on retirement according to the tax brackets. While long term capital gains have the gains taxed at 15%
Let’s say I keep putting the same amount of money in the same index ETF, and get a good amount of gains. When I sell or take the distribution (after 59.5 yrs old), if I take out more than 44k a year (12% tax rate for 2023), wouldn’t long term capital gains for an investment account be better since it’s always taxed at 15%?
original posted by Electrical-Custard69 to r/personalfinance on Sat, 20 Apr 2024 15:01:55 GMT.