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Learning, Sharing, and Teaching => Investor Alley => Topic started by: LindseyS on December 11, 2016, 12:07:56 PM

Title: IRA vs taxable
Post by: LindseyS on December 11, 2016, 12:07:56 PM: How do the index funds in your IRA differ from those in your taxable account or are they the same?

Thanks for any input.
Title: Re: IRA vs taxable
Post by: seattlecyclone on December 11, 2016, 01:24:32 PM: There's some overlap, but I tend to put less tax-efficient funds (like bonds and REITs) into the IRA while the taxable account is 100% stocks.
Title: Re: IRA vs taxable
Post by: Nothlit on December 11, 2016, 01:25:38 PM: I hold VTSAX in both.

Basically most of my diversification funds (international & bonds) are in my 403b. This allows me to keep my other accounts simple.
Title: Re: IRA vs taxable
Post by: VoteCthulu on December 12, 2016, 08:49:19 AM: All Bonds and International stocks are in my ira/401k, and my taxable account is only qualified stocks. My 401k has some investor class shares, but otherwise they're the same funds as my taxable account.
Title: Re: IRA vs taxable
Post by: MDM on December 12, 2016, 10:11:08 AM: You might consider Tax-efficient fund placement - Bogleheads (https://www.bogleheads.org/wiki/Tax-efficient_fund_placement).
Title: Re: IRA vs taxable
Post by: SeattleCPA on December 16, 2016, 07:35:16 AM: Quote from: VoteCthulu on December 12, 2016, 08:49:19 AM
All Bonds and International stocks are in my ira/401k, and my taxable account is only qualified stocks. My 401k has some investor class shares, but otherwise they're the same funds as my taxable account.

Your international stock mutual fund or funds probably create a foreign tax credit if they're in a taxable account. Losing that credit isn't a big deal... but FWIW I make a modest effort to have foreign stuff in a taxable account to pick that up.