Roth IRA

Financial Planning Tax Strategies
1

This is my first post to the board. I have a Roth IRA at Vanguard and it has been opened more than five years and I am 69 years old. Currently the money is invested in a Vanguard ETF. I haven’t owned any mutual funds for a long time because of their unfavorable tax consequences. If I were to sell the ETF and buy a mutual fund in this Vanguard Roth IRA account, I assume there are no unfavorable tax consequences i.e. capital gain distributions. Is this correct or am I missing something. Thanks for your help.

Sandywater

2

Yes you are missing something. There are no income taxes on withdraws from ANY Roth IRA.

3

Also, almost all transactions within an IRA including Traditional IRAs are not taxable. Taxable amounts are determined when distributed.

4

There are no income taxes on withdraws from ANY Roth IRA.

Not true. Distributions must be qualified to be exempt from income tax.