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Author: RetiredVermonter Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: capital gains/losses in ira accounts Date: 12/31/2005 6:26 AM
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No taxes, no losses -- within your IRA -- even for day trading, if you do that! The downside, too, of course, is that if you screw up, and LOSE money, it's jusy plain gone -- no tax breaks for that! Your IRA is like a license to make "free money", in that, within your IRA, you can make all the profit you're wise (or lucky) enough to make!

However, be careful what you do in your IRA. NEVER "play" with more money than you can afford to lose! Don't be like some of these idiots who dump ALL, or a lot of, their money into some one stock, for example, only to see it evaporate! Stay diversified, but I'd sure as heck NOT waste time trying to invest in "tax-free" things WITHIN the IRA!

I've sometimes even day traded with a small portion of my IRA money, making as much as $1,000 or more in as little as half an hour a few times -- all "tax free", until I withdraw it. (I do NOT do that very often!)

Moreover, if your total income is low enough, you'll not even pay taxes on withdrawals! For the past two years, the few thousand I pulled from my IRA still left me paying ZERO taxes to the federal or state government.

Be careful -- and good luck!

Vermonter

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