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Subject:  tax-free dividends? Date:  10/21/2012  8:08 PM
Author:  culcha Number:  116822 of 129503

I was just reading a post on another site where the poster seemed to suggest that after holding a stock for 5 years, the dividends are tax-free. I thought dividends were never tax-free (except in a qualified distribution from a Roth account).

But maybe that's what the poster was thinking of? In any case, he seemed to think that the 5 year period should go down to 2 years.

But if that's really what he meant, it seems to me that it's not really necessary to hold a stock for 5 years in order to reach this goal: you can reach the goal by immediately purchasing a dividend-paying stock in a Roth account that has been in existence for at least 5 years (and meeting an age requirement that I myself easily meet).

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