I want to institute the foolish four plan for part of my IRA. The part I am not sure about is selling of stock within an IRA. I have been told that you cannot sell stock you purchased in an IRA without taking a penalty. From reading this site, I now think that I can sell stock within my IRA as long as I do not withdraw any of that money from my IRA account. Is this correct? Thanks for the help.
No penalty, sell away!!
Greetings, Bossgobbler, and welcome. You asked:<<From reading this site, I now think that I can sell stock within my IRA as long as I do not withdraw any of that money from my IRA account. Is this correct? >>Trades that occur within an IRA have no effect on your income taxes. In that sense, you are correct in that you may trade as often as you wish without having to worry about Uncle Sam. No income taxes apply until you start taking money from the traditional IRA.Regards..Pixy
Correct. Inside an IRA you can buy and sell as much as you want, and there are no taxes or penalties as long as you leave the money in the IRA. Inside a Roth if you leave it the required time, there aren't even taxes or penalties if you take it out! You do, however, have to pay all commissions from the money already in the IRA. Best wishes, Chris
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