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[Video] How Taxable Accounts Work

by Steve Smalenberger / July 12, 2017

STEPHEN SMALENBERGER, EA

There are only three types of accounts:

  • Taxable
  • Tax-Deferred
  • Tax-Free

Let’s jump in and look at the first, Taxable.

The accounts in this registration category include the following:

  • Checking
  • Savings
  • Individual
  • Joint
  • Trust

The movement of money within the type of account is seen below:

 

 

 

 

 

Who are these accounts for?

Anyone from a newborn, someone in the middle of their career to those in retirement

How much can you deposit?

This amount is unlimited.  You can put in as much as you’d like.

How are these accounts taxed? 

The interest income, dividend income and capital gains and losses are realized and recognized in the year earned.  It is taxed as earned.

Are there any restrictions on the amount that you can withdraw? 

No, you can take out all the funds as needed when needed.  No restrictions.

If this post raised any questions or prompted some curiosity of strategies… please let us know.  We are happy to help!

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Steve Smalenberger

Steve enjoys getting to know clients and hear their unique stories and the lessons learned which has brought them where they are today. One of the reasons he enjoys what he does is the ability to show the outcome that can be achieved with different choices. He also enjoys continually learning.