ADR dividend...Trust vs Roth IRA

C

Cabin111

I knew this a few years ago...The mind goes, what can I say.

If I am in a taxable situation which is better? If I bought Shell or GSK (dividend paying foreign stock), where would it be better to be in, a Roth IRA or a trust?? Come tax time the following year, are they treated differently? I'm thinking of the withholding part and the reconciliation at tax time...

Thanks...
 
If the security is in a tax-deferred account and your foreign dividends are taxed by the foreign country, you would not be able to claim a foreign tax credit for those taxes (Form 1116).
 
ph1l said:
If the security is in a tax-deferred account and your foreign dividends are taxed by the foreign country, you would not be able to claim a foreign tax credit for those taxes (Form 1116).
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So what you are saying (in general), foreign dividend stocks are better in the trust rather than in the Roth...
 
ph1l said:
If the security is in a tax-deferred account and your foreign dividends are taxed by the foreign country, you would not be able to claim a foreign tax credit for those taxes (Form 1116)
More...

Cabin111 said:
So what you are saying (in general), foreign dividend stocks are better in the trust rather than in the Roth...
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Roths are not "tax deferred." You put after tax, not deferred, money into them, and withdrawals are tax free, not deferred. Traditional IRAs are tax deferred. If you ask this question in google: "Are Roth Accounts tax deferred?" You will get an incorrect answer? Probably an example of artificial intelligence, so it seems appropriate to call this kjnd of ersatz intelligence "artificial",.i.e., it sounds intelligent although it is wrong. Real intelligence will tell you that traditional IRAs are tax deferred accounts where you deposit money pre-tax and pay taxes on money withdrawn. Into Roth accounts you make after tax deposits and pay no tax on money withdrawn. Also, unlike the traditional IRA, there is no minimum annual withdrawal after age 70.5 on Roth accounts.
 
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piezoe said:
Roths are not "tax deferred." You put after tax, not deferred, money into them, and withdrawals are tax free, not deferred. Traditional IRAs are tax deferred. If you ask this question in google: "Are Roth Accounts tax deferred?" You will get an incorrect answer? Probably an example of artificial intelligence, so it is appropriate to call this ckjnd of intelligence "artificial",.i.e., sounds intelligent although it is wrong. Real intelligence will tell you that traditional IRAs are tax deferred accounts where you deposit money pre-tax and pay taxes on the money withdrawn. Into Roth accounts you make after tax deposits and pay no tax on the money withdrawn. Also, unlike the traditional IRA, there is no minimum annual withdrawal after age 70.5 on Roth accounts.

When the Roth was "created" it was calculated by some office of authority that, by making certain assumptions, the two types of retirement accounts would yield the same net amount on retirement. That myth is how the Roth was sold. We all know it is impossible to know the future many years distant with any certainty.
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Yes, I have known it for about 35 years...See below.

https://www.elitetrader.com/et/threads/why-roth-iras-are-so-valuable.369127/

I was just asking about reconciliation...If the withholding matters much.
 
Trust are also better because you can shell a trust to the point of theoretically no tax, especially in modern countries within the Western Hemisphere
 
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