Municipal Bonds Don’t make this tax mistake – Waukesha CPA Edith Christian

You’re probably well aware that interest from municipal bonds is generally not subject to income tax or the 3.8% Medicare surtax. So don’t make the mistake of turning tax-free income into taxable income by holding municipal bonds in the wrong kind of account. Municipal bond income in a retirement account will be taxed as ordinary income when you eventually take distributions from the account. Keep bonds in your non-retirement accounts to maintain the nontaxable treatment of the income they generate.

Edith Christian CPA
N9 W29360 Thames Road
Waukesha, WI 53188