The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/greetings-ichimnu-and-welcome-to-the-fool-what-11788732.aspx

Subject:  Re: short-term OK for 1st-yr Roth? Date:  1/11/2000  12:55 PM
Author:  UUinMN Number:  17646 of 74759

Greetings, ICHIMNU, and welcome to the Fool!

What is the potential tax loss ...

There are no tax consequences within an IRA. With the Roth, you paid taxes on the money before you deposited it. With a Regular IRA, you pay at withdrawal. With both, all transactions inside the IRA have no tax consequences.

Your strategy could make some sense in a taxable account. I think a simpler plan is to sell at 11 months some year when you have a loss. (And in 25 years, you should expect some losses.)

Fool on!

Michael
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us