Message Font: Serif | Sans-Serif
No. of Recommendations: 2
Whether its an IRA or a cash account, its all your money and should be treated with care either way.

IRA is somewhat better for high beta stocks because you do not have to hold for a year to get best tax treatment. Hence, you can take profits (or losses) freely without concern.

Of course (at least until they change the law) paying capital gains rates in a cash account is better than the IRA overall because the IRA gains get taxed at ordinary income tax rates in retirement.

Best overall can be the Roth IRA, which is after tax when contributions are made, but pays no additional income tax on gains.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.