17 Jan Do I pay capital gains tax on trades in my IRA?
Photo: pixabay.comQ. Do I have to pay capital gain tax when I trade stocks in my traditional IRA account?
— New investor
A. Trading within your IRA is much different — and more advantageous tax-wise — than trading in a brokerage account.
When you own a traditional IRA, 401(k) or 403(b) retirement account, there are no income taxes due until you withdraw funds, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.
“These types of accounts are known as tax-deferred accounts,: he said. “All income taxes are deferred until funds are withdrawn from the account.”
Happy trading!
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This story was originally published on Jan. 17, 2022.
NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.