
Taxable vs. Tax-Free Buckets
Most people don’t realize this, but there are both 𝗧𝗔𝗫𝗔𝗕𝗟𝗘 and 𝗧𝗔𝗫-𝗙𝗥𝗘𝗘 buckets you can use to grow your wealth. Nearly everyone is familiar with the “taxable bucket.” If an investment is in a “taxable bucket” then that means that any earnings on that investment will be taxable. Most people use these in the form of a tax-deferred IRA or 401(k). In those examples both the contributions and the earnings are taxable upon withdrawal at whatever the tax rate is