Selling shares within a Roth IRA
July 13, 2007 10:16 AM Subscribe
What are the rules about selling shares held in a Roth IRA? Warning: still a bit of a finance n00b...
posted by electric_counterpoint to work & money (17 answers total) 3 users marked this as a favorite
Maybe I am just Not Clear on The Concept, but it seems to me that, when the market's had a good few years and the stocks and funds I hold are up, I should sell them and lock in the gains. Since they're good companies (or good funds, as the case may be), I'd probably repurchase them with the proceeds. At least, this is what I would do if I owned these shares in a traditional brokerage account, but I own them within a Roth IRA. However, I can't find anything online about anyone doing having done this, let alone any advice about it!
I know that I can't sell my shares and divest from the IRA completely without paying an early withdrawal penalty. I also know about capital gains taxes and the wash sale rule and all that, and I know that those apply to taxable accounts. Are the same rules in place for Roth IRAs? Am I just missing the point of an IRA, or what?