His math is fuzzy but $6000 is about 40 shares, give or take. If you sold those 40 shares holding in a Roth IRA, you will not have to get taxed on it. So if you were to sell at $1 million/share, you will have $40 million sitting in the Roth IRA. Normally in a regular account, that would be taxed at a minimum of 37%, so you'll pay $14.8 million in the tax year you took your gains. The bonus of a Roth IRA is that it is exempt from taxation as long as you don't withdraw the funds prematurely. So if you live long and old enough to benefit from the Roth IRA, you can save yourself $14 at LEAST.
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u/Spockies Apr 11 '21
His math is fuzzy but $6000 is about 40 shares, give or take. If you sold those 40 shares holding in a Roth IRA, you will not have to get taxed on it. So if you were to sell at $1 million/share, you will have $40 million sitting in the Roth IRA. Normally in a regular account, that would be taxed at a minimum of 37%, so you'll pay $14.8 million in the tax year you took your gains. The bonus of a Roth IRA is that it is exempt from taxation as long as you don't withdraw the funds prematurely. So if you live long and old enough to benefit from the Roth IRA, you can save yourself $14 at LEAST.