I am interested in opening a roth ira account, but would like to fund the account with my own stock choices. Is this possible? All of the brokerages that I have checked so far offer mutual funds to choose from. I have inquired at Datek (my online broker)but have yet to get a response. Also, can I make trades in my ira account without being taxed for any capital gains? Any input or suggestions would be appreciated.
If you establish a Roth IRA with a mutual fund company, guess what they want you to put your funds into? If you establish an IRA with a bank, they will want you to put the money into CDs. If you have your IRA, Roth or otherwise, with a stockbroker, they may offer some mutual funds, but will be perfectly happy for you to trade stocks! Regards, Chris
for mo, who asked "Also, can I make trades in my ira account without being taxed for any capital gains?" Yes, your capital gains and losses inside an IRA are not treated as capital gains and losses for tax purposes. Instead, when you make distributions from the IRA, all that money is taxed as ordinary income. So, in years when you make no distributions from your IRA, its investment results have no effect on your tax bills.Chips
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