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Just wondering on that note: Suppose I open a Roth IRA and invest the money in stocks. So, will the capital gains not be taxed when I withdraw the money? How about if I do a DRIP with the Roth IRA (eg Walmart, lot of fees though)? Will I have to pay taxes on gains made in every year. Now, whether I can invest in individual stocks thru a Roth IRA is another question.

Also, I read somewhere "IRA's convert capital gains into ordinary income". Sounds like its bad. I couldnt quite understand it. Any help would be appreciated.

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