Highway <highw[at]y.org> wrote:

- quote -

As long as the withdrawls are qualified, i.e. after a
certain age, for a house and for other situations defined in
IRS Publication 590 yes the money is take out tax free. You
can withdraw the original $2000 contribution at any time
without incurring penalties.

As for reporting the stock transaction you don't have to.
There is nothing to report as the transaction is not taxed.

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I have a question regarding capital gains in a Roth. Let me
describe a scenario: suppose I open up a new stock trading
account as a Roth IRA. Let's say I that I qualify for a
Roth and open the account up with a $2000 cash deposit for
the year 2003, and further assume that I make some good
trades and that I sell all of the stock and the account is
up to $4000 in cash before year end. My understanding of
the Roth is that everthing in the account is tax free, so
all $4000 is mine to keep when I withdraw it (assume I
withdraw it in the future at such a time as to not invoke
any early withdrawal penalties). Am I correct? Do I get to
keep all $4000? Next question: how do I report the stock
transactions on my 1040 form?

Thanks very much, please reply to the newsgroup.

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