I’m a 33 year old long term investor with a Roth IRA and a taxable account. I don’t plan on withdrawing anytime soon, just curious how it works.
With a a taxable account, aren’t there no taxes if you withdraw contributions, yet there are taxes on gains?
How exactly does it work?
Say someone has contributed $10,000 per year for 5 years all into SPY for simplicity’s sake. That’s a total of $50,000 they put in.
Current balance with the gains doesn’t necessarily matter, as long as it’s above $30,000 for this example.
Say they want to withdraw $30,000.
Is it possible to do so and pay no taxes?
Why or why not?
Even if the price of the shares went up, $30,000 is obviously less than the $50,000 put in
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