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Author: QwertyHero Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 266459  
Subject: A foolish ROTH IRA contribution question Date: 10/5/2012 10:45 AM
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Hey Gang,

A very simple question that I think I already know the answer too but just want some confirmation.

True or False: In a ROTH IRA, profits realized from the sale of a stock/mutual fund that is used to purchase another stock/mutual fund in the ROTH IRA acount, DOES NOT count as a contribution towards the $5,000 limit?

Basically, I want to sell one of my underperforming mutual funds in my ROTH IRA and take the proceeds from that sale and reinvest in another mutual fund. In this scenario, the profit realized form the sale does not affect my contribution limit, correct? In other words, I can still contribute $5,000 this year even if the profit from the sale of investments in my ROTH IRA exceed $5,000, right?
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