[quote=”[email protected]“]I’ld like to know if there are any year-end tax implications when I make short term trades in my Roth IRA account. I understand the tax implications when I withdraw money at retirement age, but not too sure about short term trades using money inside the account. I shouldn’t get taxed, correct? as any earnings I receive will be taxed when I withdraw the money. Thanks for your help.[/quote]

You are right. What (trades) happen within your Roth IRA stays within your Roth IRA ( like Vegas 🙂 ). You and your custodian are the only ones that know about these trades, as they are not reported to the tax authorities. So, you can place as many trades as you like, as often as you like, and there will be no tax implications resulting from those trades.

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However, as a frequent trader you should be aware of an IRS ruling that applies the wash sale rules to securities sold for a loss in your taxable account and re purchased within +/- 30 days in your IRA, either a TIRA or a Roth IRA. Re purchase in your IRA would not only defer the loss from the taxable account sale, but it would be forfeited because you do not get any added basis in your IRA as a result of the wash sale.

Again, your IRA is not directly affected, but your taxable account loss is forfeited as a result of the IRA re purchase.

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