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I received a dividend on my shares of TOT inside my Roth-IRA. 25% of this dividend was instantly taken by the Federal government.

Isn't every event or action inside a Roth tax free ?

Yes, with respect to US taxes. However I see that TOT is an ADR, which means that the corportation isn't a US corporation. You're being taxed by the government of whatever country it's in. Investor relations could give you more information.

Were this in a taxable account you would get the foreign tax credit on your 1040, but since it's in an IRA you get no tax benefit from the foreign taxation. One reason, not necessarily dispositive, for not keeping such investments in an IRA.

Rule Your Retirement Home Fool
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