No. of Recommendations: 0
I often see references to the fact that IRA withdrawals and variable annuity withdrawals are taxed as ordinary income even if the money represents capital gains from investments inside the IRA or variable annuity. This is generally stated matter of factly without comment or objection. My question is, are not capital gains capital gains? Why should they be called anything else just because they are inside a tax deferred instrument. There would be no problem keeping track of what was a capital gain and what wasn't within the IRA or variable annuity. So what is the rationale for penalizing tax deferred investments by pretending it is all ordinary income?
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement