Tax-Deferred and Tax-Free Investments
- Introduction
- Series EE and Series I Savings Bonds and the Education Tax Exclusion
- Tax-Advantaged Education Plans
- Annuities
- Cash Value Life Insurance
- Roth IRAs
Introduction
Retirement plans including traditional 401(k)s and deductible IRAs, grow tax-deferred. In addition, there are certain investments which earn income that is not currently taxable, such as Series EE and Series I Savings Bonds, certain tax favored education plans, annuities, and cash value life insurance. And, if the Series EE and Series I savings bonds and education plans are used for college, you may never pay tax on the income.
Roth 401(k)s, Roth 403(b)s, and Roth IRAs are considered tax-free investment accounts. Provided you adhere to the holding period requirements established by the IRS, qualified withdrawals from this type of IRA are never taxed.
SUGGESTION: The monies in your retirement plans are growing on a tax-deferred basis (tax-free in a Roth 401(k), Roth 403(b), and Roth IRA); that is, the earnings are not being taxed while they are in the retirement plan. Since you're already getting a tax-deferred benefit, don't invest any of your funds in tax-exempt investments within a retirement account. It may be prudent to consider investing in higher yield taxable investments.
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Securities and insurance products are offered through INFINEX INVESTMENTS INC. and its affiliates, member FINRA/SIPC. Infinex Investments Inc. and Exchange Investment Services, Inc. are independent entities.
Securities and insurance products are offered through INFINEX INVESTMENTS INC. and its affiliates, member FINRA/SIPC. Infinex Investments Inc. and Exchange Investment Services, Inc. are independent entities.
Not FDIC Insured | Not Bank Guaranteed | May Lose Value | Not Guaranteed by any Government Agency | Not a Bank Deposit
This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. registered representatives. Infinex Investments Inc. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all the investments and services mentioned are available in every state.
