Comments on: Roth IRA Niceties

Question: Roth IRA Niceties

bink — Sat, 14 Oct 2006 20:02:34 -0800

Are there tax consequences from buying and selling stock within a Roth IRA?

I've got a Roth IRA, a rollover from a 401(k) from an old job, and one of the stocks in it is doing well enough that it unbalances my portfolio and makes me a little nervous. I would like to sell a bit of it and invest the proceeds in either the mutual funds that are already within that IRA, or a new stock or fund.

I believe this should be permissible, but what I am trying to be sure about is:
1. Come tax time, what do I do about the profit I've made on the sale?
2. What about the fees/commissions charged by Ameritrade? Do I have to put that money back into the IRA?

By: blackkar

blackkar — Sat, 14 Oct 2006 20:09:10 -0800

If you are not transferring any of the proceeds from the sale out of the account, you will not have any tax consequences. This is true of any retirement account, not just a Roth. The fees and commissions are not taxable, nor deductible, and you cannot put money into the account to make up the difference.

By: bink

bink — Sat, 14 Oct 2006 20:12:11 -0800

Good grief, that took all of seven minutes.
Thank you.