Quote:
Originally Posted by kepp
What about an ordinary trading account? Obviously the contributions are post-tax. Do you get taxed on the growth every year?
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Not necessarily. You gain the tax benefit or cost when you realize the gain or loss by selling. If you buy Amazon tomorrow, and it's up $150 at year end, you don't owe anything on that unless you sell.
You'd owe on any dividends possibly that get paid out through the year. Qualified dividends are typically at long term cap gains rates