The table below compares individual brokerage accounts with retirement accounts.
| Brokerage Account | Retirement Account | |
|---|---|---|
| Taxes | May incur capitals gains tax on investment income; investments sold 1 year or less after buying are subject to ordinary income tax | Typically no capital gains; tax-deferred or tax-free growth |
| Contributions | Unlimited | Caps on annual contributions |
| Withdrawals | No limits or penalties | Penalties for withdrawing before a certain age, unless exceptions are met |
| Primary Use | Stock trading, options trading, additional long-term investments after maxing out retirement accounts | Long-term growth, retirement savings |
"Very customer focused offering, outstanding investment advice and recommendations that meet or exceed your wealth building objectives. You're in good hands with Longhouse Wealth Management. ⭐⭐⭐⭐⭐"
Gary H.
non-retirement account
Rollovers, Roth, traditional IRA, SEP
non-retirement account
Rollovers, Roth, traditional IRA, SEP
"I had money coming from various sources, they made the transition easy and worry free." ⭐⭐⭐⭐⭐"
Adrienne D