LONG TERM, SHORT TERM INVESTMENT IN ROTH IRA?

Hi!

I have the ROTH IRA account.
After I paid for my stock, it says reduced term.
Because I do not have to compensate taxation upon my profit, I can sell it after 1 week or 4 year, still I do not have to compensate tax.
Am I right?

{ 3 comments… read them below or add one }

bostonianinmo September 7, 2010 at 11:35 pm

As long as it’s traded within the Roth, there are no tax consequences.

StephenWeinstein September 8, 2010 at 12:12 am

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.

ninasgramma September 8, 2010 at 12:25 am

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.

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