Taxes on Investments

The investments you make with Stash are taxed the same way as any other investment.

This means you will need to pay taxes on money you make through capital gains, dividends, and income interest.

To put it another way: if one of the funds in your portfolio increases in value, and you sell that investment at a higher value than you bought it at, you’ve made some money and that’s considered income.

You’ll need to pay taxes on that income as well as income from dividends and interest earned from debt investments.

Taxes for Stash Retire

We always recommend talking to a tax professional (like an accountant) about your unique tax needs, as well as potential IRS penalties and taxes.

However, if you are contributing post-tax dollars to your Stash Retire Roth IRA and you’re planning on keeping it in there until you’re 59 ½, you don’t need to worry about these fees and taxes. You can withdraw your money tax-free once you’re 59 ½, which is one of the benefits of a Roth IRA.

Potential Penalties for Stash Retire

There are certain circumstances that could lead to you facing additional penalties from the IRS for withdrawing money from your Roth IRA. You may find yourself facing penalties if:

1. You are withdrawing money from your Roth IRA and are under the age of 59 ½.

OR

2. You are withdrawing more money from your Roth IRA than you’ve contributed.

OR

3. You are withdrawing more than the total amount of money you contributed to your first Roth IRA within the first 5 years of opening it.

If any of the above circumstances seem like they may apply to you, please consult a tax professional for guidance.

This information is subject to change and should not be considered legal or tax advice. If you have questions regarding your personal circumstances, you should consult a tax or legal professional.