ROTH account at eTrade

[Guest flynn]

Question for the group:

I have a ROTH account at ETrade that contains stock for company XYZ, bought at $50 a share. The stock goes up to $100 a share. Can I sell the stock without incurring a penalty? I'm guessing that I will have to pay the capital gains tax yet, correct?

Thanks in advance.

flynn

[John G]

Roth Rules!

No tax.

No penalty.

No difference between holding periods as there is no such things as long term capital gains or ordinary income in a Roth.

No reason other than your own personal monitoring systems to even keep a record of the transaction.

You need to be more familiar with rules govening Roth IRAs. I highly suggest that you read some general literature about Roths. IRS Publication 590 is a start. Etrade has some materials on line. You can also find more in your local library, your own bank, Consumer Reports March issue of any year, and other financial magazines.

[Guest flynn]

Thanks for the info John.