Do I have to report anything to them? I thought I didn't have to pay taxes on the gains.
2007-02-01 08:25:48 · 3 answers · asked by snowraider 3 in Business & Finance ➔ Personal Finance
You don't have to pay taxes on the gains, but they do cap the amount of contributions you can make each year, and receiving all contribution data will help them find out if you're trying to cheat the system.
2007-02-01 08:37:33 · answer #1 · answered by the_amazing_purple_dave 4 · 0⤊ 0⤋
Two reasons. So that after 5 years you can withdrawl earnings for a qualified event. Also this prevents people from putting more money than the max contribution for the year by opening up ROTH accounts at different brokerages.
2007-02-01 16:44:29 · answer #2 · answered by VATreasures 6 · 0⤊ 0⤋
You don't have to pay taxes on the gains, but you do have to report them to the IRS! You will also enter the amounts you invested in Roths on your tax return.
2007-02-01 16:29:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋