Tax Liability

[MrsKeyboard]

Hello,

If I sell a stock (i.e. AAPL) in my Traditional/Roth IRA accounts and immediately buy the same stock in my non-retirement accounts, will that trigger tax liability? Just to be clear, I'm not taking any money out of my retirement accounts (i'm just trying to move a specific stock out of my retirement accounts).

Thanks

[Critter-3 · Accepted solution]

Only distributions from a retirement account causes a tax liability situation on your return.  Selling a stock in a retirement account is not a taxable situation  no more than buying a stock in the IRA. .. sort of like the "what happens in Vegas stays in Vegas" moto.

What you then do in a non retirement account is immaterial to what happened in "Vegas".  

[VolvoGirl]

No.  Selling in a IRA Account is not a taxable event unless you take out a withdrawal or cash or the actual shares.  Can I ask what you are going to do with the sale proceeds in the IRA Account?  Buy another stock or leave it in cash inside the IRA?

[Mike9241]

what you have done produces no tax liability nor any other tax issues.  however, many taxpayers are not aware that if they sell a stock in a taxable account at a loss and then within 30 days before or after the sale buy identical stock in any of their retirement accounts they trigger the loss sale rules. the loss is disallowed and can never be recovered.   

[VolvoGirl]

@Mike9241   What about the other way around?  Sell in IRA then buy in the taxable account.

[fanfare]

@VolvoGirl 

Since losses in your IRA are never reported, they cannot be disallowed.