SEP IRA

Question: Simple tax question about Stocks and Roth IRA’s.?

A simple question but I can’t find the answer. If I get some stocks/efts or a Roth IRA and don’t sell any shares, what taxes do I pay?

What if I don’t reinvest dividends, if I just hold on to the stocks. Do I only pay when I sell?

Answer: Yes, you pay when you sell, except in the case of some mutual funds, where you may incur a tax liability before redeeming shares. Some ETF’s also have different tax treatment- the gold and silver funds, where they actually hold bullion work differently than stock ETF’s.

You will get end of year statements from your Broker.

Also, it depends how long you held the investments- some may be considered short term capital gains…

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