Confused about selling stocks within a Roth IRA
Here’s a summary of the main problem and solutions discussed in the conversation:
- Main Problem: The user wants to sell shares of FSKAX in their Roth IRA to invest in FXAIX but is unsure how to do this without incurring taxes or losing money.
- Solution 1: It was confirmed that selling shares within a Roth IRA does not incur taxes, as these accounts are tax-advantaged.
- Solution 2: The user can trade freely in the IRA, and they would only need to consider taxes or penalties if they decided to withdraw funds from the account.
- Additional Resource: A link was provided for more information on IRA withdrawals to help clarify any further questions.
Here’s the full thread
I opened a Roth IRA a few months ago and bought shares of FXAIX that have grown to about $5000 and shares of FSKAX that have grown to about $1000. After learning more about investing, I now see those two funds are almost the exact same and want to sell all of my holdings of FSKAX and put it in FXAIX. How would I go about this? Im not trying to withdraw the money or anything and only want to sell my holdings of FSKAX so I can invest elsewhere. What steps should I take to go about doing this? Because I of course don’t want to be taxed or lose money.
You can diversification as a strategy
@Kyle Doops I agree but my questions was how I should got about selling shares in a Roth
you can sell shares without being taxed
thats the benefit of a roth, all your earnings you receive are tax free because its a tax-advantaged account not tax-deferred
this is from fidelity
Thanks!
Hi there, @aJissocool.
IRAs are tax-advantaged retirement accounts. You can trade in the account freely and sell shares as you would in a normal account.
Generally speaking, you would only need to worry about taxes or penalties if you were to withdraw money from the account.
You can learn more at the link below.
IRA withdrawals: https://www.fidelity.com/building-savings/learn-about-iras/ira-withdrawal
If there is anything we can clarify or if additional questions pop up, please don’t hesitate to ask! We’re always happy to help. 🟢
Thanks!
You are most welcome! 🟢