No. of Recommendations: 0
For example, if I had any amount of money in an online IRA account, I could conceivably do short term day trading to increase my IRA account balance. But am I subject to the short term gains taxes the same as a regular traded account where I can withdraw the amount without penalty.

I have an IRA with TDWaterhouse, and I use it to trade stocks. HOWEVER, there is a rule that states that IRA accounts may not be used for day-trading, which means that if you open a position in the morning and close it before the end of the day, your account will be flagged as a day-trading account. Believe me, I know since I tripped this rule early on in my trading experiments. You can't open short position, but you may buy puts and calls. So, IRA accounts are better for swing-trading where a position may stay open for days or weeks.

On the tax side, you do not pay taxes on short-term or long-term gains in your IRA. OTOH, you don't get a tax deduction for your losses. You do get taxed at ordinary income rates when funds are withdrawn (assuming a rollover IRA from a 401K)

Good Luck,

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.