[widgeon13]

If the money stays in the IRA you pay no cap gains.

"The assets inside of an IRA grow tax deferred until withdrawn, meaning no taxes are due from profits generated inside of the account. However, amounts withdrawn from IRA's are considered taxable income in (after tax)contributions made to an IRA. This portion can be withdrawn tax free. So, in order to keep the paperwork and tax reporting down, buying and selling activity should occur in the IRA account instead of a taxable account. From a tax standpoint, keep in mind that withdrawals from IRA's are taxable income, not capital gains. The advantage of having gains from investment outside of an IRA account is that capital gains tax is less than ordinary income tax assuming the gains are long term."