topic I have a beneficiary 401k which is valid for the 10% early fee to be waived. Can I use a 45k capital loss against the 20% federal or 6% state withholdings? in Investors & landlords https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/i-have-a-beneficiary-401k-which-is-valid-for-the-10-early-fee-to-be-waived-can-i-use-a-45k-capital/01/705465#M31346 Thu, 06 Jun 2019 13:45:29 GMT safe 2019-06-06T13:45:29Z I have a beneficiary 401k which is valid for the 10% early fee to be waived. Can I use a 45k capital loss against the 20% federal or 6% state withholdings? https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/i-have-a-beneficiary-401k-which-is-valid-for-the-10-early-fee-to-be-waived-can-i-use-a-45k-capital/01/705465#M31346 Thu, 06 Jun 2019 13:45:29 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/i-have-a-beneficiary-401k-which-is-valid-for-the-10-early-fee-to-be-waived-can-i-use-a-45k-capital/01/705465#M31346 safe 2019-06-06T13:45:29Z No, because withdrawing from a 401(k), even an inherited... https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/no-because-withdrawing-from-a-401-k-even-an-inherited/01/705469#M31347 <P>No, because withdrawing from a 401(k), even an inherited one, is ordinary income, not capital income.</P><P>If you don't have any other capital gains, you deduct $3000 of the capital loss this year and carry the rest forward.</P> Thu, 06 Jun 2019 13:45:30 GMT https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/no-because-withdrawing-from-a-401-k-even-an-inherited/01/705469#M31347 Opus 17 2019-06-06T13:45:30Z