How premiums received from selling Covered Calls inside an Roth IRA are taxed? And if yes, how? As regular income, where are they reported, ie 1099?
Thanks, Alex Turchina

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alex <[email protected]> wrote:

How premiums received from selling Covered Calls inside an Roth
IRA are taxed? And if yes, how? As regular income, where are they
reported, ie 1099?

As far as I can tell, in general no IRA earnings are reported at any
time. They are just taxed as ordinary income when they come out of the
IRA. This also applies to capital gains - if income would be taxed as
long term capital gain if it weren't in the IRA, it's taxed as ordinary
income when it comes out of the IRA.

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On 7/17/21 8:58 PM, Stuart O. Bronstein wrote:

alex <[email protected]> wrote:

How premiums received from selling Covered Calls inside an Roth
IRA are taxed? And if yes, how? As regular income, where are they
reported, ie 1099?

As far as I can tell, in general no IRA earnings are reported at any
time. They are just taxed as ordinary income when they come out of the
IRA. This also applies to capital gains - if income would be taxed as
long term capital gain if it weren't in the IRA, it's taxed as ordinary income when it comes out of the IRA.

Yes, all correct for traditional IRA. This is a Roth. Any legitimate
trading within the Roth is tax free, as are withdrawals, within the
rules of Roth.

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According to JoeTaxpayer <[email protected]>:

Yes, all correct for traditional IRA. This is a Roth. Any legitimate
trading within the Roth is tax free, as are withdrawals, within the
rules of Roth.

It sure is. Peter Thiel put 1.7m shares of Paypal into his Roth in 1999, underpricing them
at 1/10 cent each (arguably underpricing them which would be illegal.) They're worth
$5 billion now, tax free.

https://www.theguardian.com/technology/2021/jun/24/billionaire-peter-thiel-5bn-tax-free-savings

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Please consider the environment before reading this e-mail. https://jl.ly

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On Sunday, July 18, 2021 at 3:46:46 PM UTC-4, John Levine wrote:

According to JoeTaxpayer <[email protected]>:

Yes, all correct for traditional IRA. This is a Roth. Any legitimate >trading within the Roth is tax free, as are withdrawals, within the
rules of Roth.

It sure is. Peter Thiel put 1.7m shares of Paypal into his Roth in 1999, underpricing them
at 1/10 cent each (arguably underpricing them which would be illegal.) They're worth
$5 billion now, tax free.

https://www.theguardian.com/technology/2021/jun/24/billionaire-peter-thiel-5bn-tax-free-savings

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Regards,
John Levine, [email protected], Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly

I wrote some covered calls in my Roth a few years ago. I didn't "report" them in any way. It just folds into the account.

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