Some general advantages with owning taxable bonds in a qualified account over holding municipal bonds in a taxable account are as follows:
During the non-IRA withdrawal stage, the taxable bonds will generally produce higher pre-tax returns. During the withdrawal phase of IRA assets, municipals may provide a slight after-tax advantage, but probably no more than .1% to .5% annually.
100% tax-efficient return
Astute asset class placement between accounts, utilizing tax-loss harvesting, and employing tax-managed index funds can provide the optimal benefits of tax efficiency with maximum effective diversification. The rigorous application of these powerful tax-minimization techniques can help an investor retain more of their hard-earned wealth and be able to have more spendable income.