Top 15 Questions about Trading in an IRA

Based on searches that lead people to Six Figure Investing, these are the top investment questions people ask about IRAs.  For definitive answers to tax questions in your specific circumstances please consult a tax professional. General Why trade in an IRA?   Because it allows you to defer or avoid taxes on dividends and capital gains—all of your profits can be reinvested tax-free. What trading restrictions/rules …

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Trading puts in an IRA account

Most IRAs will allow buying puts (assuming you get the appropriate approvals), even if you don’t own the underlying in the account.     This opens up the field for speculative uses of options, in addition to the buttoned-down protective put strategies. Recently I had deep in the money puts and OTM covered calls on SPY in my IRA account.   As expiration approached I …

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