10yr 30yr Treasury Bonds in Roth IRA?

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JimTaylor33
Posts: 8
Joined: Mon Jan 30, 2017 8:17 pm

10yr 30yr Treasury Bonds in Roth IRA?

Post by JimTaylor33 » Mon Apr 10, 2017 8:47 pm

Should long term treasury bonds be held in a Roth IRA? Or better to leave in taxable.

Since they are except from state taxes already I thought maybe they should be in taxable since you only pay the fed tax on them. Then hold stocks in the roth ira for greater capitol gain preservation. At the same time stocks long term gains are taxed at a good rate, whereas bonds pay interest twice a year that could be saved in the roth.

young-ish
Posts: 35
Joined: Fri Apr 15, 2016 12:10 am

Re: 10yr 30yr Treasury Bonds in Roth IRA?

Post by young-ish » Mon Apr 10, 2017 9:34 pm

JimTaylor33 wrote:Should long term treasury bonds be held in a Roth IRA? Or better to leave in taxable.
I hold Long-term Treasury Bonds only in tax deferred accounts. This is because the interest income is fully taxable at the Federal level.

When my IRA/401k is filled up with bonds I hold low-turnover stock index mutual funds in my taxable account. This is especially advantageous if in the 15% or lower income tax bracket since Long-term Capital Gains from stock sales would be taxed at zero.

JimTaylor33
Posts: 8
Joined: Mon Jan 30, 2017 8:17 pm

Re: 10yr 30yr Treasury Bonds in Roth IRA?

Post by JimTaylor33 » Mon Apr 10, 2017 9:39 pm

young-ish wrote:
JimTaylor33 wrote:Should long term treasury bonds be held in a Roth IRA? Or better to leave in taxable.
I hold Long-term Treasury Bonds only in tax deferred accounts. This is because the interest income is fully taxable at the Federal level.

When my IRA/401k is filled up with bonds I hold low-turnover stock index mutual funds in my taxable account. This is especially advantageous if in the 15% or lower income tax bracket since Long-term Capital Gains from stock sales would be taxed at zero.
Wow I had no idea about the 0% option if in 15% or below. That is a pretty awesome thing to be aware of. Thank you!

young-ish
Posts: 35
Joined: Fri Apr 15, 2016 12:10 am

Re: 10yr 30yr Treasury Bonds in Roth IRA?

Post by young-ish » Mon Apr 10, 2017 9:45 pm

JimTaylor33 wrote:
young-ish wrote:
JimTaylor33 wrote:Should long term treasury bonds be held in a Roth IRA? Or better to leave in taxable.
I hold Long-term Treasury Bonds only in tax deferred accounts. This is because the interest income is fully taxable at the Federal level.

When my IRA/401k is filled up with bonds I hold low-turnover stock index mutual funds in my taxable account. This is especially advantageous if in the 15% or lower income tax bracket since Long-term Capital Gains from stock sales would be taxed at zero.
Wow I had no idea about the 0% option if in 15% or below. That is a pretty awesome thing to be aware of. Thank you!
You are welcome.

You can read more at the IRS website about Capital Gains... https://www.irs.gov/uac/ten-facts-that- ... and-losses
Tax Rate. The tax rate on a net capital gain usually depends on the taxpayer’s income. The maximum tax rate on a net capital gain is 20 percent. However, for most taxpayers a zero or 15 percent rate will apply. A 25 or 28 percent tax rate can also apply to certain types of net capital gain.

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