Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
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
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.
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.