IRA Rules

Question: Roth IRA INVESTING QUESTIONS?

I recently opened a Roth IRA with TradeKing.

I know I can’t withdraw tax free until about 60 years old, but does that also include selling, or only when I take money out of my brokerage account?

I was going to use this account for my dividend stocks, since they won’t be taxed correct? Is this a good plan?

What are the rules for Roth IRA selling, am I never taxed on realized gains, shortterm or longterm?

Thanks

Answer: OK, Ralph you will need to review your rules. Some concepts you mentioned are correct and some are for the other IRA format which is incorrect for this person.

First, You can take the monies out at any time and have no penalty. This would be a return of capital and never taxed. Plus you were already taxed on it before you invested.

Second, put dividend paying stocks in makes good sense. This is a great benefit of Roth IRA’s and the down fall of the standard IRA.

As for buying and selling in the account, you are only limited by the Tradeking fees, rules, or your willingness to pay fees for trading. For the most part there is no real limit other than your cash, but fees can add up fast.

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