Short Term Capital gains and Roth IRA

[Guest Rusty]

How are short term capital gains handled

if investing inside a Roth IRA?

Thanks!

Rusty

[Guest PenProf]

Under a ROTH IRA, all earning grow tax deferred, and, if monies are held until the later of 59 1/2 or five years, there is no income tax liability whatsoever.

In a traditional IRA, earnings grow tax deferred and are taxed as ordinary income when withdrawn. There is no capitol gains tax treatment whatsoever.

[Guest Rusty]

Much thanks PenProf!