New Trader Q & A Discuss Trading with an IRA in the Stock Market School forums; Im wondering, when you make gains or losses in your IRA. I know you dont pay any taxes untill you withdraw the money, BUT how are you to figure it ...

Foxtrot · #1 11-13-2008, 01:55 PM

Im wondering, when you make gains or losses in your IRA. I know you dont pay any taxes untill you withdraw the money, BUT how are you to figure it when you do ?
A person would have many many years of trades, I mean you could trade the same stock hundreds of times, how do they excpect you to track al this?

Evil-Eye · #2 11-14-2008, 07:18 AM

Quote:

Originally Posted by Foxtrot

Im wondering, when you make gains or losses in your IRA. I know you dont pay any taxes untill you withdraw the money, BUT how are you to figure it when you do ?
A person would have many many years of trades, I mean you could trade the same stock hundreds of times, how do they excpect you to track al this?

If you are trading in a self directed IRA the money is sheltered in the IRA. Only the withdrawal amount is considered income taxed at your income tax rate. You do not need to keep your cost basis for taxes for your stocks in a self directed IRA. You could have a bazillion dollar gain in a year and only withdrawal 10k you are taxed on the 10k with drawl not the bazillion dollar gain. Likewise, you can not subtract your losses in an IRA from your income on your taxes. This is the way I remember it from when I was an Expert

I am not an tax accountant but I did stay at a Holiday Inn Express in Juno Beach Florida. This is for educational purposes only.

If you want to get really confused consult the rule maker.

Internal Revenue Service

Foxtrot · #3 11-15-2008, 10:13 AM

So your saying that forget the capiyol gain and loss, it is just regular income ?

That would sound logical.

Thanks

**BadThad** · #4 11-26-2008, 05:05 PM

Quote:

Originally Posted by Evil-Eye

If you are trading in a self directed IRA the money is sheltered in the IRA. Only the withdrawal amount is considered income taxed at your income tax rate. You do not need to keep your cost basis for taxes for your stocks in a self directed IRA. You could have a bazillion dollar gain in a year and only withdrawal 10k you are taxed on the 10k with drawl not the bazillion dollar gain. Likewise, you can not subtract your losses in an IRA from your income on your taxes. This is the way I remember it from when I was an Expert

I am not an tax accountant but I did stay at a Holiday Inn Express in Juno Beach Florida. This is for educational purposes only.

If you want to get really confused consult the rule maker.

Internal Revenue Service

I believe this is correct, my biggest trading account is a self-directed IRA. It's really considered an IRA and not so much a stock account, just like a company sponsered IRA. It is what it is regardless of gains and losses.

Evil-Eye · #5 11-26-2008, 11:28 PM

Quote:

Originally Posted by BadThad

I believe this is correct, my biggest trading account is a self-directed IRA. It's really considered an IRA and not so much a stock account, just like a company sponsered IRA. It is what it is regardless of gains and losses.

Is that a SAR SEP IRA that you are speaking of with your employer? You know I used to sell small business 401 k's sponsored by Fidelity. I could get your employer a real good deal.

I might be able to get you a 403b if your in the education or health fields. $99 down and $99 dollars a month.

401 k's are expensive for small employers because of the admin fees. That was the challenge for those products.

**BadThad** · #6 12-02-2008, 09:53 AM

Quote:

Originally Posted by Evil-Eye

Is that a SAR SEP IRA that you are speaking of with your employer? You know I used to sell small business 401 k's sponsored by Fidelity. I could get your employer a real good deal.

I might be able to get you a 403b if your in the education or health fields. $99 down and $99 dollars a month.

401 k's are expensive for small employers because of the admin fees. That was the challenge for those products.

No, it's an IRA from a former employer...it was rolled into a self-directed IRA plan. It's not tied to any company now. It's all mine free and clear.

I currently work for a large company with a traditional IRA plan too....but that is a "classic" plan with just mutual fund type options.