I have 12K in my Roth IRA. I use it to day trade. Now I want to take out the 12K what is my penalty? And do I get taxed on my trades when I buy and sell?
asked Mar 6, 2020 at 21:26
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Are you talking about day trading within your IRA account?– AcccumulationMar 6, 2020 at 21:59
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@Acccumulation - it seems that was stated. While it was stated, it’s not part of the question, i.e. the question is regarding taxes.– JTP - Apologise to Monica ♦Mar 6, 2020 at 22:20
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@JTP-ApologisetoMonica I feel that it implies some Gricean implicature.– AcccumulationMar 6, 2020 at 22:27
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The linked duplicate question addresses early withdrawal. The "day trading" is a red herring– JTP - Apologise to Monica ♦Mar 7, 2020 at 15:45
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1 Answer
You are able to withdraw deposits tax-free. Any earnings are taxed, and a penalty may apply. The "day trading" has nothing to do with it.
answered Mar 6, 2020 at 21:39
JTP - Apologise to Monica♦JTP - Apologise to Monica
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What if I bought Tesla at $200 and then sold some at $400 and then re-bought again at 250 and sold again at 800? I profited twice. Mar 8, 2020 at 5:22
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This makes no difference. What matters is the total Roth deposits, and value when you take withdrawals, assuming you are pre-retirement age. Again, the transactions, how frequently, how many total, etc, are not relevant. Mar 8, 2020 at 11:01
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But isn't this how a non-ira stock trading account works? you pay tax on each trade that you made a profit on and not when you withdraw? Mar 8, 2020 at 19:24
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