You expect incorrectly. Capital gains (or losses) do not apply to retirement accounts. All taxable distributions are taxed as ordinary income. That is the advantage of tax deferred retirements accounts - you pay no tax on the earnings when earned so it can grow tax free, but when distributed it is ordinary taxable income.
That is one difference between a brokerage account and retirement account.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
