Whether it is better to hold US or foreign stock in taxable depends on your tax situation. With foreign yields now double US yields, and more non-qualified dividends from foreign stock, US stock in taxable tends to be more tax-efficient. One possible exception is if your state allows a foreign tax credit; this would give you a double credit for the foreign tax.
There may also be a non-tax consideration. If your 401(k) has better options for US stock than foreign stock, then you need to hold your foreign stock somewhere else; this could be in an IRA, but if you need the IRA for something else or it isn't large enough, you should hold foreign stock in a taxable account.
There may also be a non-tax consideration. If your 401(k) has better options for US stock than foreign stock, then you need to hold your foreign stock somewhere else; this could be in an IRA, but if you need the IRA for something else or it isn't large enough, you should hold foreign stock in a taxable account.
Statistics: Posted by grabiner — Mon Jan 27, 2025 9:15 pm — Replies 2 — Views 282