The $10 you put in the after-tax would be the same $10 that go in your taxable account. So regardless of whether you choose After-Tax or Taxable, you pay the tax. Now, the benefit of the After-Tax (once it gets into the Roth) you never pay any additional taxes on that ever. While the Taxable account w…
The $10 you put in the after-tax would be the same $10 that go in your taxable account. So regardless of whether you choose After-Tax or Taxable, you pay the tax. Now, the benefit of the After-Tax (once it gets into the Roth) you never pay any additional taxes on that ever. While the Taxable account will see you paying taxes on dividends and on the capital gains when you eventually sell the underlying assets.
So I would lean prioritizing that after-tax account as much as you can if you have the excess savings and it is for the long term.
I think you might be missing a piece.
The $10 you put in the after-tax would be the same $10 that go in your taxable account. So regardless of whether you choose After-Tax or Taxable, you pay the tax. Now, the benefit of the After-Tax (once it gets into the Roth) you never pay any additional taxes on that ever. While the Taxable account will see you paying taxes on dividends and on the capital gains when you eventually sell the underlying assets.
So I would lean prioritizing that after-tax account as much as you can if you have the excess savings and it is for the long term.
Thanks for the perspective!