topic Traditional IRA distribution in Retirement tax questions

Traditional IRA distribution

ml_l — Tue, 10 Nov 2020 23:54:37 GMT

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?

Re: Traditional IRA distribution

VolvoGirl — Wed, 11 Nov 2020 00:33:48 GMT

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.

Re: Traditional IRA distribution

fanfare — Wed, 11 Nov 2020 22:10:24 GMT

Only a bit.

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