since a roth ira is exempt from capital gains taxes, does it not matter at all whether a capital gain is long-term or short-term?
2007-05-29 09:40:46 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Its a tax deferred account so you're not going to pay taxes regardless of whether the cap gains are short or long term. However, with Roth IRA's if you withdraw any earnings before the 5 year clock is up or before you reach the age of 59 and a half those cap gains are considered earnings and you will pay taxes on those earnings as ordinary income at whatever tax bracket you are in.
2007-05-29 09:43:46 · answer #1 · answered by meetbleek23 3 · 2⤊ 0⤋
All income generated by a Roth is either tax-free or taxed as ordinary income plus a possible 10% penalty. How the income is generated is not taken into consideration.
In particular, long-term and short-term capital gains are treated as any other income.
2007-05-29 18:00:57 · answer #2 · answered by ninasgramma 7 · 2⤊ 0⤋
Long and short term gain has no meaning inside an IRA, Roth or traditional.
2007-05-29 17:07:47 · answer #3 · answered by Judy 7 · 2⤊ 0⤋
Since the income is tax-free, it doesn't matter whether it's short term or long term.
2007-05-29 16:45:11 · answer #4 · answered by Bostonian In MO 7 · 1⤊ 1⤋