Sounds like you're really trying to do what you can to save for your retirement. That's great!

My first question is can't you open a brokerage account for you IRA and purchase these exact investments? I'm under the impression that pretty much any investment available within a brokerage account can also be purchased under the umbrella of an IRA.

The next question is whether an IRA makes more sense than a non-retirement account. Remember, with a non-retirement account, you're taxed on dividend income and mutual fund distributions as received. You're also taxed on realized gains, but only when you sell an investment. Under the current rules, the maximum long-term capital gains tax rate is 15%.

With you're IRA, you're taxed on money withdrawn from your IRA at ordinary income rates. Currently, the maximum tax rate on ordinary income is 35%. Don't forget that your non-deductible IRA contributions will reduce the taxable portion of your dividends, so make sure to complete and attach a Form 8606 to your 1040 each year keeping track of these contributions.

There are other benefits to an IRA, including some asset protection, the ability to rebalance your portfolio without paying capital gains taxes, and the opportunity to spread the income from the IRA over your lifetime and the lifetime of your beneficiary.

It's a tough choice, so make sure to seek out the advice of your CPA and/or financial advisor.

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