The Bogleheads' Guide to Investing

The Bogleheads' Guide to Investing

Taylor Larimore, Mel Lindauer, Michael LeBoeuf

Bond dividends are not IRS qualified for the lower tax rate. Accordingly, dividends from taxable bond funds in taxable accounts are taxed at the investor’s marginal income tax rate—up to 39.6 percent. What do tax-savvy investors do? They place taxable bonds in their tax-sheltered accounts whenever possible.
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