Quote:
Originally Posted by DaKCMan AP
Another option (if you're eligible) is to invest in a Roth IRA. It's still after-tax $$, but it grows tax free. You can always remove your contributions without penalty, tax free but to distribute earnings penalty free and tax free you will have to be older than 59.5 years and you have to have held the account for at least 5 years.
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So for a 401k, the contributions are pre-tax, but you get taxed when you take distributions...and for a Roth IRA, the contributions are post-tax but you are not taxed on the growth at all as long as you take qualified distributions?
What about an ordinary trading account? Obviously the contributions are post-tax. Do you get taxed on the growth every year?