Quote:
Originally Posted by CRCRFT78
This thread is making me realize there is ALOT more to this than just buying and selling. Now comes into play the questions about taxes and being taxed. I recently dumped a stock and two mutual funds I wasn't happy with in favor of purchasing some other stocks. Because this is a rollover IRA account (not sure if that affects anything tax wise) should I be worried about the taxes now or does that come into play when deductions begin to come out at retirement?
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IRA/401 are TAX DEFERRED ACCOUNTS -- no taxes due UNTIL you retire and start the withdrawals. The PREMISE is that you would then be a far lower tax brackets and that your withdrawals are controlled to minimize taxes etc. So if you made the transactions inside these types of accounts -- then you don't need to worry - there is no taxable action NOW.
If the transactions are within a ROTH IRA - there is NEVER any tax due - because that was after tax funds. You pay no further taxes even upon withdrawal. They're WONDERFUL but are very limited with their own "maximum funding per year" rules and they have limits as to WHO (by income) can fund them.