Roth Accounts Save $10,080 Annually on 8% Dividend Portfolios
Tax-sheltered Roth accounts eliminate federal taxes on $42,000 annual dividend income, boosting after-tax returns by $10,080 yearly. A $500,000 portfolio yielding 8% generates $42,000 in annual dividends. In a taxable account at a 24% federal bracket, after-tax income drop