Rusty
Apr 22 1999, 01:32 AM
How are short term capital gains handled
if investing inside a Roth IRA?
Thanks!
Rusty
PenProf
Apr 23 1999, 09:26 AM
Under a ROTH IRA, all earning grow tax deferred, and, if monies are held until the later of 59 1/2 or five years, there is no income tax liability whatsoever.
In a traditional IRA, earnings grow tax deferred and are taxed as ordinary income when withdrawn. There is no capitol gains tax treatment whatsoever.