If you max out a Roth, ESA, and the 401k match, what’s next? I want to in and above these. Was wondering what kind of taxes I will owe on the I make on these, capital gain or regular income?

 
  • longball954 9:02 am on April 6, 2010

    Any gains you have from investing in stocks/mutual funds that were made with after tax money would be subject to capital gains tax. If you hold the stocks/mutual funds for at least 1 year, they will receive favorable tax treatment and be classified as long-term capital gains.

    Currently, the maximum amount of tax owed on LT Capital Gains is 15%.

    ST capital gains are taxed at regular income levels.

  • Judy 9:02 am on April 6, 2010

    capital gains rather than being taxed as ordinary income if you hold them over a year so it’s long term. Short term capital gains are taxed at your ordinary income rate.

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