Funds from my IRA will be reinvested in the market

[jhall]

This is my first year I'll need to take my RMD from my IRA.  Some of that money will be reinvested in the market. I'll open a separate account for these funds.  How are the gains or losses tracked and reported to the IRS?  If there are dividends earned but not withdrawn how are they taxed and reported?  

Thanks

[dev145]

Hello  jhall,

As you know, there is no gain or loss is reported when you withdraw money from IRA. You will report total distribution as income (your 1099-R will have that info.). Once you reinvest that money, it will be just regular brokerage account where you will get 1099-B at the end of the year that you will use to report all your capital gains and losses. Please note, wash sale rule still apply if stocks sold in IRA at a loss and then repurchase within 60 days. But I do not know any broker who can provide that info. There are few company that might help with aggregation or you can track that info. on your own. 

As for dividends and interest earned but not withdrawn, broker firms are good at keeping track of these type of info. so that it will be properly reflected on IRA account and 1099-DIV.  Again there is no separate reporting of dividends and interest on IRA accounts. 

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