ToddL99
Expert Alumni

Retirement tax questions

Unfortunately, there isn't a special tax break available for reinvesting IRA distributions in a non-retirement investment such as public or private securities.

 

Once you remove funds from a qualified retirement account, they lose any special tax treatment (other than if you made a qualifying rollover).

 

When you sell those shares, however, the amount you paid for them will count as their cost basis and will reduce the taxable gain on the sale.