2007-12-23 07:57:52 · 4 answers · asked by brian v 2 in Business & Finance ➔ Taxes ➔ United States
No. A Roth IRA is funded with after tax money. You have to pay tax on the capital gain. If you held the stock more than one year it is a long-term gain and the tax is low. If you held it one year or less it is a short-term capital gain. You can invest up to $4,000 in the Roth, but all income and gains from it are tax free.
2007-12-23 08:06:26 · answer #1 · answered by Anonymous · 5⤊ 0⤋
If you had earned income and meet the other requirements for contributing to a Roth, you can use the money from the sold stock however you want to including putting it in a Roth. But that doesn't change anything about having to pay the capital gains tax on the stock sale if you had a gain.
2007-12-24 16:54:01 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The above answers are correct.
I would only add that in order to contribute to an IRA (either Roth or tradtional) you must have earned income. If your only income during the year was capital gains, you are not eligible to contribute.
2007-12-23 09:16:17 · answer #3 · answered by taxreff 7 · 5⤊ 0⤋
No. You have generated a taxable gain from personally held stock.
2007-12-23 08:03:04 · answer #4 · answered by Anonymous · 4⤊ 0⤋