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Taking advantage of an IRA, 401k, or HSA is a great way to trade individual stocks and other securities without incurring any taxes on capital gains. It doesn’t matter whether you have a Roth IRA or a Traditional IRA, your profits are tax free as long as they remain in your individual retirement account. You can day trade stocks and options tax free until you heart’s content, just be aware of the risks associated with speculative investments. Gains within your 401k also are not taxed when you trade securities, but you are usually limited to a small subset of ETFs or Mutual Funds in a 401k. It is important to rollover your old 401k’s into a rollover IRA when you change jobs so that you can have maximum control over how you invest your retirement savings. Remember to look out for brokerage trading fees and management fees on actively managed funds. There’s no reason why you should be paying trading fees in this competitive brokerage market. Health savings accounts or HSA’s are similar to IRA’s in that you can trade individual stocks without getting taxed on gains.
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