My understanding is that if someone pulls money out of their IRA/ retirement account before age 59.5 they will be penalized 10% plus whatever their income tax rate is. My question is, what if someone buys, $BBBY for example, at $5 and sells at $30 all within a week span and all within their retirement account. Then let's say that person wants to pull the gains from $BBBY out of their retirement account. Would they be subject to 10% plus ordinary income PLUS short-term capital gains? If capital gains is applicable, what if they waited 1 year before pulling the gains out of their retirement account – would that matter?
Thank you.
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