Using carryover Capital loss in a IRA or 401k distribution

[hesformes]

If I have capital gains in a retirement account, when I take a distribution, can I use my carryover capital loss to offset the capital gains in that distribution, or does it just become a normal distribution that is fully added to my income for tax purposes?

[Anonymous_]

@dmertz 

[TomD8 · Accepted solution]

As a result of the Tax Cuts and Jobs Act, the option to claim a loss on IRA investments is no longer available as of 2018.

[Mike9241]

for as long as there have been IRAs capital gains and losses inside an IRA are never recognized by the beneficiary. Those capital gains become ordinary income when you take a distribution.  there was a provision, since repealed, that allowed recognizing a loss under certain conditions.

[dmertz · Accepted solution]

Gains and losses within a retirement account are not reportable.  Distributions from a retirement account are ordinary income and are not subject to any capital-gains treatment.