Posted On: 08/13/2015 4:23:31 PM
Post# of 41414
Kinda. I opened a Roth because I needed a place to stash my tax free deployment money.
Your initial deposits into the Roth Can be taken out at 5 years with no penalty. If withdrawn early it will incur a 10% tax/fee.
Any gains can be pulled out any time but will incur an income tax (dependent on tax bracket) plus an additional 10% early withdrawal fee.
Since I am 24 and in a very low tax bracket a Roth is more beneficial. I would pay 15% tax + 10% early withdraw = 25% tax on my BLTA investment.
If it was in a regular trading account I would pay 35% capital gains if held less than a year. there's a lot of info out there on the inter webs involving roths.
Your initial deposits into the Roth Can be taken out at 5 years with no penalty. If withdrawn early it will incur a 10% tax/fee.
Any gains can be pulled out any time but will incur an income tax (dependent on tax bracket) plus an additional 10% early withdrawal fee.
Since I am 24 and in a very low tax bracket a Roth is more beneficial. I would pay 15% tax + 10% early withdraw = 25% tax on my BLTA investment.
If it was in a regular trading account I would pay 35% capital gains if held less than a year. there's a lot of info out there on the inter webs involving roths.
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