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| Retirement Saving for retirement - questions about pensions and pension schemes, 401k's, public and private company pensions, and other saving schemes. |
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what happens if I trade stocks in my IRA ,say I have 50k cash
to start with and trade stocks with 25k and make 25k profit and leave all of it in the IRA and keep doing that every year. I am 46. As long as I dont cash any out is this ok????? thanks. |
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You can switch between stocks/cash as much as you want. There's no taxes on money that stays in the account.
PS: Hope that's just an example and not your actual investment strategy. |
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where does the limit thing come in..?? does that just have to do with cash donations.?? I got this trad.ira as an inheritance
8 months ago and it is up 30%. It was all stock and I cashed out the stock to save the gains.( but left all in the ira) Worked great.Then I moved it to another trading firm as an trad IRA. Since then it would have lost 30 %. I want to play the stk mkt with maybe 25k. But will not remove any of the account... Last edited by fifo9876; 02-09-2008 at 07:23 PM. |
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The limit applies to putting additional money INTO the IRA.
You can do whatever you want inside the IRA and tax consequences will only rear their ugly head when you liquidate or withdrawal from the IRA. There will be a 10% penalty on any withdrawals prior to age 59 1/2. An IRA is an "OK" type of account for short-term trading strategies. This is because if you performed the same transactions in a non-IRA brokerage account, you'd trigger short-term capital gains, which would happen to be no different than an IRA (ordinary income). The disadvantage to an IRA is liquidity prior to retirement. The advantage is the short-term tax implications are deferred, whereas in a non-IRA account you'd have to pay them each year. |
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