I have a check coming to me from my former employer that is payable to my Vanguard Rollover IRA. I would like to use the proceeds to invest in bonds because the remainder of the money in my Rollover IRA is in stock funds.
I want to make sure that I understand Taxable vs. Tax-exempt when it comes to bonds. Here is my perception:
Within my IRA, the taxable bond would not be taxable until I withdrew the funds at retirement. This would be the same for my other stock funds.
Within my IRA, it doesn’t make sense to purchase tax-exempt bonds because the IRA is already tax exempt until I make withdrawals and the tax-exempt bonds generally have lower yields.
Is this correct?
I want to make sure that I understand Taxable vs. Tax-exempt when it comes to bonds. Here is my perception:
Within my IRA, the taxable bond would not be taxable until I withdrew the funds at retirement. This would be the same for my other stock funds.
Within my IRA, it doesn’t make sense to purchase tax-exempt bonds because the IRA is already tax exempt until I make withdrawals and the tax-exempt bonds generally have lower yields.
Is this correct?
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