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Trading within a Roth


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Guest deathtaxesnoles
Posted

Will I have to pay taxes on any profit from selling stocks within a Roth IRA if the profit stays within the Roth Account?

Guest investorforlife
Posted

"There are no tax implications to transactions within the Roth account. Under standard retirement withdrawals, there are no taxes on Roths either." :D

(According to and verified with John G - registered member)

Also, please check out the topic entitled "Individual Stocks/Stock Options from ROTH IRA account" under IRA and ROTH IRA category.

Posted
"There are no tax implications to transactions within the Roth account. Under standard retirement withdrawals, there are no taxes on Roths either."

This is true, assuming the distribution is a "qualified distribution"

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

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Posted

This is not exactly true. Roth IRAs are subject to the prohibited transaction provisions of the IRC which could result in the earnings on roth contributions being taxed if the owner engages in a PT e.g, using the assets as collateral for a margin loan.

mjb

Posted

Geez, someone is now quoting me!

Let me say it this way. If you have not exotic transactions and take normal retirement distributions.... no taxes on any transaction inside the Roth, no taxes when you take distributions.

That statement probably covers 99% of the population.

As note above, there are some really obscure issues that can trip you up. Perhaps you might even run into the alternative minimum tax issue or Congress may make some technical modification that will have an impact.

BUT, for 99% of the folks who read this site. The ones with basic investment accounts and own either mutual funds or standard publicly traded stocks or bonds.... there is not tax impact. You also do not have to keep track of dates of purchase and sale as the LT and ST gains concept within an IRA or a Roth is meaningless.

IF, you have any doubts that you live like 99% of the general public. IF, you think you have some scheme that is growing hair. IF, you are just the nervous type. Check with your tax advisor or tax accountant.

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