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Subject:  Re: Taxes on IRA wthidrawls Date:  2/24/1998  5:43 PM
Author:  TMFPixy Number:  1949 of 99740


<<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?>>

As Cameron pointed out, in a traditional IRA there is no capital gains rate. All untaxed income and earnings will come out of that vehicle subject to ordinary income tax rates in effect at the time of withdrawal.


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