IRS ROTH IRA's, CAN INVESTMENTS IN ROTH IRA BE TRADED?

Question

CAN INVESTOR TRADE THE INVESTMENTS IN ROTH IRA

Answer 1

Mutual funds can be bought or sold at anytime. However, since your mutual funds are in a Roth IRA, if you sell any of your shares before age 59 1/2, you may be hit with a 10% tax penalty if you are not using the proceeds for qualified expenses (such as purchase of first home or paying for college). If your Roth IRA is less than 2 years old and you redeem any shares, you will be hit with a 25% tax.

After age 59 1/2, you may redeem your shares without having to pay any taxes on anything and you can keep your investments as long as you like (meaning, you don't have to redeem it all at once). If you die during your retirement years, your beneficiary will get assets.

Answer 2

Bottom-line, Yes.

Depending on where you have your Roth IRA, determines the flexibility of your IRA. If you don't have as much flexibility as you want, you can always move your IRA to somewhere better.

You can always buy and sell inside of your IRA and you won't have to pay taxes on your gains. Depending on what you buy or sell, you may face some fees for your moves. You should consult a financial advisor to see if the move is corect for you.