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.
Selling "cash" to re-balance?
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Selling "cash" to re-balance?
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Re: Selling "cash" to re-balance?
No tax implications. Everything inside an IRA or 401k is tax-free until you make a withdrawal.
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Re: Selling "cash" to re-balance?
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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Re: Selling "cash" to re-balance?
Thank you! Doing the PP for about a year now. Every next step is still a new step. Appreciate it.
Give me six hours to chop down a tree, and I will spend the first four sharpening my axe.
Re: Selling "cash" to re-balance?
And for Roth IRA or Roth 401(k) it's tax-free forever (unless law changes).Pointedstick wrote: No tax implications. Everything inside an IRA or 401k is tax-free until you make a withdrawal.
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
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Re: Selling "cash" to re-balance?
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.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.
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