Tax Advantaged Investment Accounts

The tax system is very burdensome in the U.S and even more complicated when it is related to investments. Different type of investment gains can be subject to different tax rates and tax treatments. In addition, many complicated investment accounts provide some tax benefits to encourage people to save for certain future expenses. However, many people don't know how to use these accounts wisely or don't even know these accounts exist. In this post, I compiled a list of common tax-advantaged investment accounts created for funding retirement, education, and medical expenses. 

The interactive map below could keep us updated on the available options. You could find overwhelming information regarding each type of accounts or comparison of different accounts online. However, as I mentioned many times, you should only trust the information derived from an official source unless you have a trusted professional to be held accountable. Each type of accounts has specific rules and requirements you have to meet in order to take advantage of the tax benefits. It is always hard to find out what exceptions or special rules may apply to your specific situation. So I added a link to the official source for each type of account which can be used for future reference.

Tax is a very important consideration in investing. Besides the tax-advantaged accounts listed above, some investments like municipal bonds and some investment vehicles including certain types of life insurance and annuities may also get special tax treatments which make them superior from the tax perspective. However, the tax is definitely not the sole factor you should consider when you make an investment decision. More importantly, you need to find out what you should actually invest and how to invest, in order to achieve your goals of funding for retirement, education or medical expenses.


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