in Education
You'll need to sign in or create an account to connect with an expert.
Yes, when you actually make a withdrawal from the IRA the withdrawal will be taxable income. The plan administrator will send you a Form 1099-R for the tax year when the funds were withdrawn. You report the Form 1099-R on your federal tax return.
When you take a withdrawal it is not broken out by sales, interest, dividends etc. It is taxed as ordinary income and you won't get any capital gains treatment on it. That is one of the disadvantages to Traditional IRAs.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
Liv2luv
New Member
in Education
dllundgren
Level 1
david-crawford-home
New Member
laura90025
Returning Member
therepomann
New Member