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[[I want to make sure I have this straight. I take $2,000 from an income tax refund, back pay,
whatever. I put it in a Roth account at Ameritrade, Suretrade or some other deep discount broker
who will give me a number of free trades. I buy and sell and whatever I make by way of capital
gains or dividends is not taxable, either now or when I start drawing it down at 59 1/2 or to buy a
first home etc.....

Is this true? If It is is, this almost seems like an inducement to gambling, a sort of Wall street casino.
What makes it better is that you can only lose $2,000 a year. What say you???? ]]

I guess I'm missing you point. People gamble with their money every day...legally and illegally. The government is not "sanctioning" this activity, simply providng investors a vehicle for long term tax advantaged savings.

You might want to check out my post on the Roth IRA for some additional information as to what the Roth was intended for and how it works. You can find this post in the Taxes FAQ area.

TMF Taxes

SPECIAL NOTE: I try to answer as many questions as I can each week, and I generally select those that have not been asked before. If you don't get a detailed answer to your question, it is probably because my time is so limited during tax season, or because it has already been asked and answered in this folder in the past, or because it has been discussed in the Taxes Frequently Asked Questions area. In order to visit the Taxes FAQ area, go to the Fool's School area ( and check out "Other Features" in the list box, OR you can jump directly to the Taxes FAQ area ( Additionally, if any references were made to the IRS Web Site, you can get there by pointing your web browser to (
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