Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Normal
You don't pay capital gains on the principal, only on the increase in value.You don't pay capital gains on a Roth at all. It is one of the few ways in which you an actually earn untaxed income. I know, I have three of them. Whether you pay more or less on tax deferred savings (TSA, IRA) or not depends on the tax bracket you're in when you pay, as opposed to the bracket you're in when you begin to take the money out. The idea is that you pay into the account when your earnings are high, take it out a little at a time when you're retired and your income is less. Of course, it doesn't always work out that way. Making sure that the 46% or whatever the figure is who don't pay income taxes do pay something may make the system more fair and make sure that everyone has some skin in the game. It wouldn't raise enough to make much of a dent in the deficit, however.
You don't pay capital gains on the principal, only on the increase in value.
You don't pay capital gains on a Roth at all. It is one of the few ways in which you an actually earn untaxed income. I know, I have three of them.
Whether you pay more or less on tax deferred savings (TSA, IRA) or not depends on the tax bracket you're in when you pay, as opposed to the bracket you're in when you begin to take the money out. The idea is that you pay into the account when your earnings are high, take it out a little at a time when you're retired and your income is less.
Of course, it doesn't always work out that way.
Making sure that the 46% or whatever the figure is who don't pay income taxes do pay something may make the system more fair and make sure that everyone has some skin in the game. It wouldn't raise enough to make much of a dent in the deficit, however.
