Author Topic: Tax implications of shifting asset allocations in Roth IRA  (Read 341 times)

grenzbegriff

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Tax implications of shifting asset allocations in Roth IRA
« on: March 06, 2024, 03:38:11 PM »
Hi,
Sometimes I want to adjust/rebalance my fund holdings.  But if I do this in my taxable account I end up having to figure out what capital gains I want to pay tax on this year etc. 

I assume since Roth IRA gains are not taxed, that if I were to shift allocations within the Roth IRA, it wouldn't make my taxes more complicated.  Is this correct, or am I missing something?

shuffler

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Re: Tax implications of shifting asset allocations in Roth IRA
« Reply #1 on: March 06, 2024, 03:57:13 PM »
Correct.
Same goes for sales within a traditional IRA, or a 401k, etc.

shuffler

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Re: Tax implications of shifting asset allocations in Roth IRA
« Reply #2 on: March 06, 2024, 04:07:10 PM »
But it may be worth mentioning that there are reasons to hold various investments in one type of account vs. others, due to the tax treatment.

https://www.bogleheads.org/wiki/Tax-efficient_fund_placement

grenzbegriff

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Re: Tax implications of shifting asset allocations in Roth IRA
« Reply #3 on: March 06, 2024, 05:19:10 PM »
Thank you shuffler that's helpful.