Yes, I could put it in taxable or in Roth. In Roth, it's all tax freeAre you comparing storing the MM fund in Roth to storing it in a tax deferred account?I am moving $10 K for home repair and auto replacement
to a MM Fund in Roth each year. That way, a sudden
$30K to $40K withdrawal will not push me into a higher
tax bracket.
The MM funds I'm aware of target a steady NAV of $1/share so they don't generate capital gains. I can see how putting the MM fund in the Roth prevents the interest from adding to your taxable income, but withdrawing money from an MM fund shouldn't affect your taxes as long as you purchased the MM fund with after tax money (taxable brokerage or Roth account). Am I missing something?
In taxable, the basis is not taxable, any earnings generated
are taxable.
Statistics: Posted by MathWizard — Sat Sep 28, 2024 8:37 pm — Replies 8 — Views 572