Is There Capital Gains Tax On Roth IRA?

  1. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is an excellent question! The investment gains within your Roth IRA are not subject to capital gains taxes. As long as your gains are contained within the IRA, you aren't subject to any taxes on those gains. That is one of the best reasons to have one. Your contributions are taxed before making them, so like life insurance, it isn't taxable coming out. There are rules about making qualified withdrawals that have to be followed to keep your withdrawals tax free during the first five years, but they only apply to the gains, not the contributions. (Those can be taken out at any time without penalty, other than loss of earnings potential.) Roth's are excellent investment vehicles, particularly when considering the tax implications. Thanks for asking!
    Answered on April 1, 2015
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  2. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    A Roth IRA is an approved retirement savings program. It deals with two things, the taxation at the time of deposits and the taxation at the time of withdrawal. One of the beauties of the plan is that taxes are not due during the accumulation phase of the plan. The money accumulating in a Roth IRA can be made up of interest or capital gains. These are treated the same way, deferred and not taxed during accumulation nor upon distribution as long as minimum requirements are met.
    Answered on April 29, 2015
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  3. 11783 POINTS
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Is there capital gains taxes on a Roth IRA? Short answer? NO. A Roth IRA is tax free in distribution if used as the plan design calls for. The funds going into a Roth are post tax dollars. In other words you're paying your taxes up front so the gains can remain tax free. This is the opposite of other retirement plans that allow you to not pay taxes on the contributions, but later tax the withdrawals.
    Answered on July 13, 2015
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  4. 226 POINTS
    Charlie Donaldson
    President, Generational Wealth Management, Newark, DE
    blah, blah, blah... Why must some people complicate such a simple question? NO, there is no capital gains tax in any form of IRA. In fact, there is no tax on a Roth IRA, period. With 1 exception... if you withdrawal before the required 5 years. Then, any gain would be taxed as ordinary income.
    Answered on August 13, 2015
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