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Level 1
posted Nov 10, 2020 3:54:37 PM

Traditional IRA distribution

I have a taxable brokerage account with capital losses. Can I offset some of those losses with a voluntary distribution from my traditional IRA account?

0 2 1037
2 Replies
Level 15
Nov 10, 2020 4:33:48 PM

If you have realized losses (meaning you had actual sales)  you can only deduct a max 3,000 loss per year. The rest you have to carry over.  So I guess you could take a 3,000 distribution from your IRA.  But if you are under 59 1/2 you will also have a 10% early withdrawal penalty on an IRA distribution.  

Level 15
Nov 11, 2020 2:10:24 PM

Only a bit.

 Line 6 capital loss does not help you with Line 4b IRAs, beyond the maximum of $3,000 in losses.