Does my capital gains loss carry over apply to distribution from my Traditional IRA?

[alandyck]

I am trying to determine if my capital gains loss carry over will apply to my traditional IRA distribution. I need to take a distribution from my IRA but I am not sure if the Capital gains loss carryover will apply or if I have to withhold funds to cover tax for the distribution when I withdraw it.

[jerry2000 · Accepted solution]

Capital loss does not directly offset IRA distributions. IRA distributions are treated as ordinary income, not as capital gains. Each year you can use $3,000 of capital losses to offset ordinary income from all sources.