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Author: bzg77 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76418  
Subject: Roth IRA Date: 7/13/2000 10:59 PM
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I was reading about "what to put in an IRA" and got a bit confused. I have a roth IRA and as I understand it nothing in there is taxable is that right? By the way right now I have the Vandguard 500 Index fund Intel and am thinking about also buying some Pfizer and Yahoo. Would that be a good mix?

Thanks Hans
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Author: rhecker One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23366 of 76418
Subject: Re: Roth IRA Date: 7/14/2000 8:24 AM
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I was reading about "what to put in an IRA" and got a bit confused. I have a roth IRA and as I understand it nothing in there is taxable is that right?

Yes, you are correct. The money you put in a Roth IRA has already been affected by income tax, so when you eventually make witdraws in retirement it is not taxed again. With a traditional IRA, you put money into it before income taxes are taken out. So when you eventually withdraw money from a traditional IRA, those untaxed contributions are now subject to the income tax which it had avoided earlier.

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Author: drippinfool Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23368 of 76418
Subject: Re: Roth IRA Date: 7/14/2000 9:30 AM
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Hans wrote, "I have a roth IRA and as I understand it nothing in there is taxable is that right?"

As I see it, the advantage of the Roth is that properly withdrawn contributions AND earnings are tax free, whereas all earnings and deductible contributions are taxable when withdrawn from a traditional IRA.
-Chester :)

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