Hi!
I have a ROTH IRA account.
After I bought my stock, it says short term.
Because I don't have to pay tax on my profit, I can sell it after 1 week or 4 year, still I don't have to pay tax.
Am I right?
2007-10-19 05:35:41 · 3 answers · asked by konok1973 1 in Business & Finance ➔ Taxes ➔ United States
You do not pay tax if you sell it and keep the proceeds in the Roth IRA (or roll them over to another Roth IRA). If you have the proceeds distributed to you, you may pay ordinary income tax on the amount by which your total distributions exceed the total of your previous contributions. It does not matter whether the gain is short-term or long-term. Capital gains tax rules do not apply to Roth IRA's.
2007-10-19 06:08:38 · answer #1 · answered by StephenWeinstein 7 · 1⤊ 0⤋
Nothing inside your Roth IRA account is taxed, until you take out a nonqualifying distribution. If you keep your investments inside the Roth and only take it out when you retire, no taxes will be owed.
2007-10-19 09:11:25 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
As long as it's traded within the Roth, there are no tax consequences.
2007-10-19 05:39:48 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋