Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
<If I realize current gains (about 3600%) on the stocks in my IRA will I be charged capital gains tax even though the IRA is supposed to be tax free? I'm new at this, I really think it's time to sell the long positions I'm holding, but I'm scared to death I'll be hit with a big bill.>

I don't want to be overly critical because you did at least ask the question. However, a basic concept in FOOLDOM is to know what you are investing in. IRA's do have many complexities, but your question is certainly not one of them. Long before you made your first investment in an IRA you should have given yourself a much better understanding of IRA basics. Not knowing the answer to your simple question may have already cost you a fortune because you did not sell earlier.

Many on this board would probably be interested in knowing just how you have gotten to where you are. Were the gains even higher a year ago? Even many FOOLS have seen a lot of their gains disappear over the last year. Do you have a good understanding of these individual companies? What is your DD telling you about their futures? You may be selling right as some of them are poised to make a strong recovery. Can you give us a little bit more in the detail department?

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.