topic Traditional IRA Distribution and CarryForward Loss in Retirement tax questions

Traditional IRA Distribution and CarryForward Loss

lllaffoon — Tue, 24 Feb 2026 07:30:43 GMT

Thinking about taking a full distribution from my Traditional IRA & I am over 59 1/2 as is my spouse (we file MFJ). If we have $77k in s/t carryforward loss & $147K in l/t carryforward loss (total of $224k) will the full taxable distribution from my IRA approx $113k be netted against that loss and thus we wouldn't have to pay any additional tax? Just want to confirm before we request the distribution. Thank you in advance for your time.

Re: Traditional IRA Distribution and CarryForward Loss

Bsch4477 — Sun, 29 Oct 2023 18:46:45 GMT

I assume that you are referring to capital gains losses. Only $3,000 of those losses will be deducted from your regular income which will include your IRA income.

Re: Traditional IRA Distribution and CarryForward Loss

lllaffoon — Sun, 29 Oct 2023 19:05:53 GMT

Yes, sorry capital gain losses. Guess I was wishful thinking that it would net all of that income from the ira distribution against our carryforward losses. So basically we can just take a $3,000 dist each year without have to pay extra taxes. Thanks very much for your time.

Re: Traditional IRA Distribution and CarryForward Loss

NCperson — Sun, 29 Oct 2023 23:44:24 GMT

@lllaffoon - the distribution from an IRA is all 'ordinary income'. Only $3000 (per year) of your loss carryforwards can be used to offset ordinary income.

the loss carryforward can be used to offset any capital gains you have until it is totally consumed.

Re: Traditional IRA Distribution and CarryForward Loss

lllaffoon — Sun, 29 Oct 2023 23:47:18 GMT

Thank you very much for that clarification. I appreciate your time.