No. of Recommendations: 3
hi, these are probably very basic questions, so thanks for any hand-holding.

- let's say that i have capital losses of $1000 in my SEP-IRA account. (so far this year, i haven't sold anything that has appreciated, only stocks that have gone down.) can i use these losses to offset 1099 income?

- let's say i do sell some stocks in my SEP-IRA account, enough to make a long-term cap gains of $1000, so now the losses are all offset by the gains. how does this change the answer to the above?

- let's say i sell even more stocks that have gone up, and now have a capital gain of $5,000. if this is in my SEP-IRA, do i have to pay cap gains taxes on it? (even though i can't get this money out since i am not anywhere near retirement age?)



Same answer to all three - NO. Gains and losses inside the IRA have no impact on current income and taxes thereon. Taxes on the IRA will begin when you start taking withdrawals in your golden years. These taxes will at your marginal rate on the amounts withdrawn each year and the series of gains and losses in the IRA over the years will not matter.

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