That is helpful. So in most instances, taxes are not withheld from capital gains, distributions, or other income generated from such accounts. However, you may want to withhold more elsewhere or pay quarterly estimated taxes to help cover any tax liabilities produced by these assets. I would check with your brokerage first, as this is just the general rule.
If taxes cannot be withheld, which I assume is the case, you can make estimated tax payments or withhold more, but only to the extent that the amount withdrawn is a capital gain. Please check with your brokerage on what your basis in the investment is as well.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
