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rcthacker: "There is no provision for capital gains and losses within retirement accounts whether employer sponsored (e.g., 401k) or individual (IRA). The IRS wants to know the cash flows: allowable contributions, conversions, and distributions. They also want to know year-end balances to make sure the RMD is met. It seems to me that the IRS only sees the retirement account as a taxable black box. All moneys that come out of a retirement account are fully taxable."

That last sentence is simply wrong.

Traditional IRA's can hav basis, if non-deductible contributions were made; when withdrawals are made, an allocated portion of the withdrawal will be return of basis and non-taxable.

Qualified withdrawals from Roth IRA's (and now also Roth 401-k's) are not taxable, either.

And Phil gave you an excellent response, too.

I supect that you have some "goal/transaction" in mind that you have not yet fully elaborated to the Board.

Regards, JAFO
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