taxation

Are corporate bonds taxed?

Interest payments are taxed as ordinary income at the federal, state, and local level.

Capital gains are taxed if they’re sold for profit.

Is interest from municipal bonds taxed?

They’re generally exempt from federal taxes.

Are T-bonds taxed?

Taxed federally, tax exempt at the state and local level.

Are 401(k)s with pre-tax or after-tax contributions?

Pre-tax.

Are 401(k)s taxed when withdrawn?

Yes.

Do penalties apply to 529 Plans?

Yes.

1. When they’re used for non-educational purposes.

2. When they’re withdrawn early.

Are Roth IRAs pre-tax or after-tax contributions?

After-tax.

Are withdrawals for a Roth IRA tax-free?

Only if qualified.

Are withdrawals of Roth IRAs penalty free?

Yes.

Are traditional IRAs pre-tax or after-tax contributions?

Pre-tax contributions.

Are there penalties when Traditional IRAs are taxed early?

Early withdrawal before 59½ penalty unless exceptions apply.

Do state governments collect ad-valorem taxes?

No.