WellHopper wrote-<Does one have to differentiate between short & long term capital gains within a traditional IRA since they are taxed at the prevailing rate at withdrawal? What about a Roth IRA?>The short answer is NO, all $$ in a Traditional IRA grows unencumbered by capital gains taxes of any kind and is taxed upon distribution as *ordinary income*. If you go back on this board a few days you'll see a number of postings on this subject. The gist of the discussion is that a non-deductible IRA's distributions (taxed at 15%,28%,etc.) *could* result in higher taxes than income from a taxable account composed of stocks held for *long* periods of time (long term cap gains rates are 10%[15% bracket] or 20%[28% bracket or higher] with extra-long term 8% and 18% rates on the way beyond the millimium!)WRT your second question, Retirement money (post 59 1/2, etc.) comes out of a Roth *completely* tax free (as far as the IRS is concerned, check your own state's code, your mileage may vary), which obviously is lower than 18% OR even 8%. ;)Chris
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