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Financial Planning / Tax Strategies


Subject:  Roth IRA Daytrading loophole? Date:  2/5/2000  10:22 PM
Author:  ColumbusFool Number:  27410 of 133103

As I understand it, the Roth IRA takes post-tax money and then there's no tax on withdrawal. So if a trader goes and opens a Roth, then trades a lot, then takes the money out, he has to pay just 10% (early withdrawal penalty) tax at most. Is my interpretation correct? I think the max one can put in each year is $2K, so the strategy has it's limits.
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