No. of Recommendations: 0

I have read a whole lot about Roth IRAs including most of the information on this site, and I have not come across anything that indicates there would be any kind of capital gains taxes on trades made within a Roth IRA. BUT there are major penalties for non-qualified early withdrawls. This is an excerpt from some Roth IRA tax FAQ taken from

Unless an exception applies, any distribution from
a Roth IRA before an individual reaches age 59 ½
will be subject to an "early withdrawal penalty" in
the amount of 10% of the amount of the
distribution required to be included in your gross
income. Be very careful NOT to confuse the early
withdrawal penalty with the taxes imposed on a
non-qualified distribution (discussed in Part III): A
non-qualified distribution imposes a tax on the
distribution, but the early withdrawal penalty will
be imposed in addition to the tax.

Example #1: Jim, age 30, makes a Roth IRA
contribution of $2,000 in 1998. In year 2005,
Jim's Roth IRA has a balance of $3,500. Jim
decides to close his Roth IRA in a non-qualified
distribution in year 2005. Since the distribution is
non-qualified, Jim will owe taxes on his Roth
earnings of $1,500, and will pay tax on this amount
at his marginal tax rate. In addition, since the
distribution took place before Jim reached age 59
½, and since Jim did not meet any of the
exceptions, Jim will also be assessed a 10% early
withdrawal penalty on the earnings. If we assume
that Jim is in the 28% marginal tax bracket, he will
pay $420 in tax on the earnings, and will pay a
penalty in the amount of $150 on the early distribution. This could be a
very steep price to pay.

Besides, I would think that while daytrading in general is not a very Foolish thing to do, daytrading within an IRA is even more so.
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