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American Capital Agency Corp. Message Board

  • blow_eye_lash_wish blow_eye_lash_wish Feb 18, 2011 1:16 PM Flag

    Anyone else buy this for their ROTH?

    Am thinking it's a no brainer with the Div. this pays.

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    • srmedusa@sbcglobal.net srmedusa Feb 19, 2011 12:36 AM Flag

      Back to the original question, Yup, I got this and 8 other REITs in my ROTH. Both common and preferred. All are spewing tax-free cash right & left.

    • Indeed, this is terrific for a Roth, all that 'ordinary income' dividend ends up totally tax-free. Inside a regular IRA, not so, all those accumulated dividends will end up fully taxable upon withdrawal. That's where I have AGNC and also some CIM, considering other high-rate stuff like NLY.

      As to the fellow who doesn't trust the gummint to forever keep ROTH distributions non-taxable, I too share your fear and skepticism of what they may do, indeed at one time all SS income was non-taxable, not true now, and the future?

      You NEVER have a contract with the gummint concerning tax issues, rarely are you ever 'grandfathered'.

      But, it's unlikely to be treated as bad as a regular IRA anyway, so I don't see any heightened risk keeping it in a Roth vs. regular.

      As to the comment that the income tax on SS goes into the SS fund, I find that hard to believe because there is nothing specific on the 1040 that breaks down the amount of tax you paid on just the SS income, and would that be calculated at the bottom, average, or marginal rate of your tax? I was under the impression that it's just more tax collections that go into the general fund.

    • I did and yes indeed.......one of the best around for a divy play.......for now.

 
AGNC
23.65+0.14(+0.60%)Aug 29 4:00 PMEDT

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