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New Member
posted Jun 5, 2019 10:58:00 PM

My wife and i cashed in our traditional ira. there zero lossess and zero gains. do we still have to pay taxes as ordinary income?

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1 Best answer
New Member
Jun 5, 2019 10:58:01 PM

Yes.  Gains and losses, interest, and dividends within retirement accounts are meaningless.   Money going in was never taxed, so it's taxed on the way out. You should receive a 1099-R for this purpose.

The opposite is true for regular brokerage accounts, which is why they send out 1099-B, 1099-INT, and 1099-DIV.

1 Replies
New Member
Jun 5, 2019 10:58:01 PM

Yes.  Gains and losses, interest, and dividends within retirement accounts are meaningless.   Money going in was never taxed, so it's taxed on the way out. You should receive a 1099-R for this purpose.

The opposite is true for regular brokerage accounts, which is why they send out 1099-B, 1099-INT, and 1099-DIV.