Skip to main content
No. of Recommendations: 0
So if i open a Roth, i can contribute,buy and sell as much as i want and not worry about taxes and i wont have to keep track of my cost basis on each stock i buy over the life of my ira??
Print the post Back To Top
No. of Recommendations: 0
So if i open a Roth, i can contribute,buy and sell as much as i want and not worry about taxes and i wont have to keep track of my cost basis on each stock i buy over the life of my ira??

You can only contribute up to $4000 per year (for 2005 - more if you are over 50). Other than that, buy and sell within your Roth to your heart's content.

foolazis
Print the post Back To Top
No. of Recommendations: 0
buy and sell as much as i want

Yup, and your brokerage will love you for it. Your balance however... not so much.

This is true for Roth IRAs as well as traditional. Roths are taxed before your put money in (i.e. like normal income). Traditional IRAs are taxed when you take money out, but pre-tax to begin with. Neither has any taxes in the meantime.
Print the post Back To Top
No. of Recommendations: 0
?Traditional IRAs are taxed when you take money out, but pre-tax to begin with.

Traditional IRAs can also be funded with non-deductible contributions, in which case the part of the withdrawals corresponding to the non-deductible contributions come out without tax.
Print the post Back To Top