No. of Recommendations: 1
Your brother is wrong.

The "Roth IRA" is an account type. Think of it as a container. You can put $2000 in that container for each tax year you qualify.

As long as the money and any earnings based on investments of that money remain in the container, it can continue to grow. Even if you buy and sell stocks, bonds, mutual funds, etc., and realize gains or dividends, as long as those gains and distributions remain within that container, there is no tax consequence.

The only time IRS looks upon it as a distribution is when you take money out of that container.

If you want a site specific to the Roth IRA, you may want to check out http://www.rothira.com
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.
Advertisement