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Author: joyousyu Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120809  
Subject: roth IRA Date: 3/11/1999 3:27 PM
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Hi:

is it true that you don't have to pay any taxes on any capital gain you earn from money that is already in a roth ira. Ex: use Roth IRA money to buy stock....stock move up...sell. no tax on these earning? that just sounds like is too good to be true!!!


joy
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Author: garyc00 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11988 of 120809
Subject: Re: roth IRA Date: 3/11/1999 4:12 PM
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ira. Ex: use Roth IRA money to buy stock....stock move up...sell. no tax on these earning? that just sounds like is too good to be true!!!

It's true!

The part you've forgotten is that this money is still
in your Roth IRA. If you take the $$ out before the
rules stipulate you can, then you have to pay
tax.

Of course if let it stay and use it as a retirement
account as it was intended, you really do pay
no tax

gary

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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12175 of 120809
Subject: Re: roth IRA Date: 3/14/1999 11:31 PM
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[[is it true that you don't have to pay any taxes on any capital gain you earn from
money that is already in a roth ira. Ex: use Roth IRA money to buy
stock....stock move up...sell. no tax on these earning? that just sounds like is too
good to be true!!!]]

It is only tax free if you follow the rules when you take the distributions from your Roth IRA. If your distribution is not "qualified", you'll pay tax on the earnings at the time of the distribution.

To read more about the Roth IRA rules, read my series of posts on that very issue in the Taxes FAQ area.

TMF Taxes
Roy

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