Tax Implications of Savings and Investment Accounts

Understanding the various ways in which accounts can be taxed will allow you to diversify your money allocation, and thus, take advantage of whichever account(s) are in favor of your goals.

After tax contribution
Tax-free Withdrawal

  • Roth IRA
  • Roth 401k/403b
  • Municipal Bonds
  • 529 Plans
  • Cash value life insurance

Tax advantaged

After tax contribution
Taxed Withdrawal

  • Ordinary savings account
  • CD, MoneyMarket
  • Mutual Funds
  • Stocks, Bonds


Pre-tax contribution
Taxed Withdrawal

  • Traditional IRA
  • SEP/Simple IRA (annuities)
  • Traditional 401k/403b

Tax deferred

This information provided is not written or intended as specific tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. We are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.