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Subject:  Taxes on IRA wthidrawls Date:  2/24/1998  11:18 AM
Author:  galtsgulch Number:  1944 of 99772

I'm a long way away from retirement, (35+ years) but I was recently wondering how withdrawals from IRA's are taxed. For example, will capital gains be treated differently than dividends, as they are in ordinary (i.e. non-tax sheltered) accounts? Don't worry, I'm only interested in the current situation -- I'm not asking anyone to guess what the situation will be like in 35 years. :-)

To take a simple and concrete example consider two people, A & B. If A buys 100 shares of a company at age 30 and then sells them off, as needed, when retired, will he be taxed at the long term capital gains rate? If person B, OTOH, puts all his money in the money market, will he be taxed at the same rate as ordinary income?

John Power

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