Investing - Theory, News & General • Re: Where to hold VTI and VUSXX, taxable vs Roth?

Hi

My accountant is telling me I should hold VTI in a Roth IRA to max out tax free gains on highest potential returning fund and hold VUSXX in a taxable account in a Roth while the Bogleheads are saying to hold VUSXX in Roth to eliminate federal taxes on the dividends and hold VTI in taxable?

I live in a zero income tax state if that helps

I'm very confused and any thoughts are most welcome

Thanks

I think many replies are giving general rules without knowing the details. In this case, details matter.

Your accountant may know your full situation better: account sizes, tax bracket, withdrawal plan, and overall allocation. For example, if VTI is 30x the size of VUSXX, then the small tax savings from sheltering VUSXX may matter much less than putting the higher-growth asset in the Roth.

Bogleheads are generally right that VTI is tax-efficient in taxable and VUSXX interest is federally taxable. But that does not automatically make VUSXX the best use of limited Roth space.

I would ask your accountant to show the numbers both ways using your actual balances.

Statistics: Posted by babystep — Sat Sep 12, 2026 2:04 am