options trading within roth IRA
I would like to trade options in my roth ira. How would the IRS treat the successful trades tax wise. I would assume they would not be taxed at all within the roth IRA , however we never assume anything with the IRS.
I would like to trade options in my roth ira. How would the IRS treat the successful trades tax wise. I would assume they would not be taxed at all within the roth IRA , however we never assume anything with the IRS.
Permalink Submitted by Alan Spross on Mon, 2012-07-02 22:05
Options trading in IRA accounts is offered with different restrictions applied by your custodian with trading oriented custodians offering the broadest options. Generally, the highest risk options are not allowed such as short puts and short call options or any strategy using margin, which is not allowed in an IRA. The tax treatment follows general IRA rules, meaning that nothing is reported until a distribution is requested. Gains in a Roth IRA are tax free once the Roth IRA becomes qualified.