Selling "cash" to re-balance?

Discussion of the Cash portion of the Permanent Portfolio

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PFG
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Selling "cash" to re-balance?

Post by PFG »

I use my IRA to hold cash in the form of Treasury Bills.

Are there any tax implications to selling these then using the funds to purchase Long Term Bonds in the same IRA?

This is my first time needing to sell cash for re-balance purposes. A little unclear on tax implications.
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Pointedstick
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Re: Selling "cash" to re-balance?

Post by Pointedstick »

No tax implications. Everything inside an IRA or 401k is tax-free until you make a withdrawal.
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foglifter
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Re: Selling "cash" to re-balance?

Post by foglifter »

IRA is not a taxable account, your broker will not report any gains to the IRS. You have nothing to worry about.
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PFG
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Re: Selling "cash" to re-balance?

Post by PFG »

Thank you! Doing the PP for about a year now. Every next step is still a new step. Appreciate it.
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foglifter
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Re: Selling "cash" to re-balance?

Post by foglifter »

Pointedstick wrote: No tax implications. Everything inside an IRA or 401k is tax-free until you make a withdrawal.
And for Roth IRA or Roth 401(k) it's tax-free forever (unless law changes).
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notsheigetz
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Re: Selling "cash" to re-balance?

Post by notsheigetz »

PFG wrote: I use my IRA to hold cash in the form of Treasury Bills.

Are there any tax implications to selling these then using the funds to purchase Long Term Bonds in the same IRA?

This is my first time needing to sell cash for re-balance purposes. A little unclear on tax implications.
Think of the money in your IRA as seed money that the IRS lets you freely trade in selected markets however you wish. They only become interested at the time of harvest.
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