Very newbie question but how does it work?
I hear 15% a lot but that's only if you hold it for more than a year? Let me try to outline a scenario.
Company A bought and sold stock, made $1000 in less than one year. Taxed at what rate? Does it make a difference in what account you are buying/selling in? Like taxable, 401k, rollover IRA, Roth IRA? Which is the most tax efficient and what are the rates?
Company A bought and sold stock, made $1000 in more than one year, meaning held at least one year. What is tax rate, 15% What rate would it be based on what account? Does it make a difference based on how much withdraw and is it taxed at a higher rate if your income from stock gains is added to a pension or social security?
Correct me if I have anything wrong, this isn't me doing this but just wondering how it works.