Not All Retirement Accounts Should Be Tax-Deferred

Not All Retirement Accounts Should Be Tax-Deferred

Millions of Americans nationwide are socking away money in all forms of investment retirement accounts (IRAs), annuities and employer-sponsored retirement plans, both qualified and non-qualified. In this article, we'll explore when it may be better to leave your assets exposed to the tax man when you're saving for retirement. The first question most people ask, is "Which types of investments should be placed inside tax-deferred accounts?" Because of their nature, tax-deferred accounts will provide the greatest benefit when they shelter investments that generate frequent cash flow, or distributions, that would otherwise be taxable, which allows these payments to remain whole and be reinvested most efficiently.