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Level 2
April 1, 2026
Question

TRADITIONAL IRA COST BASIS

  • April 1, 2026
  • 1 reply
  • 8 views

Are reinvested dividends and reinvested capital gains included in the cost basis of a Traditional IRA?

    1 reply

    baldietax
    Level 12
    April 1, 2026

    no those are earnings which have not been taxed.  they would be considered part of the cost basis of a position if you are tracking gain/loss of individual positions like you would in a taxable account, but not the basis of the IRA.  only non-deductible contributions are part of the basis since that is "after tax" money.