A. G. Kalman wrote:

- quote -

Well, it wouldn't impact the taxation of the IRA, so it
doesn't change that black box <grin> . It just manages to
influence the treatment of a sale outside of the box...

--
Ed Zollars, CPA
Phoenix, Arizona

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A. G. Kalman wrote:

- quote -

I don't recall Ed's postion, but fairmark.com takes the
position that it would be forbidden self-trading, rather
than a wash sale.

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Ed Zollars, CPA wrote:
- quote -

I'm doing this from memory, but didn't you (Ed) take the
side that the IRS would most likely treat a loss on the sale
of Company A securities a wash sale if you simultaneously
purchased the shares in a tax-deferred retirement account?
If so, the IRA wouldn't be a "black box." Maybe a "dark
gray" box?

--
Alan
http://taxtopics.net

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ask8y[at]yahoo.com (Ask) wrote:

- quote -

When you withdraw from your traditional IRA you pay ORDINARY
income tax on the amount withdrawn. There are no capital
gains or losses in the account and no capital gains
treatment of the amount withdrawn. You can track the
investments in the account for your own purposes, but all
that is irrelevant to the taxation of the distribution.
Withdrawals before age 59-1/2 may also be subject to a 10%
early withdrawal penalty, in addition to the income tax due.

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"Ask" <ask8y[at]yahoo.com> wrote:

- quote -

Activity inside the IRA is irrelevant. Taxation occurs upon
distribution from the account.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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Ask wrote:

- quote -

An IRA is a "black box" for tax purposes--it doesn't matter
*HOW* you earned the funds withdrawn, they are taxed the
same on distribution. So, no, you don't need to track
individual trades for tax purposes.

--
Ed Zollars, CPA
Phoenix, Arizona

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ask8y[at]yahoo.com (Ask) wrote:

- quote -

You don't have to track trades in an IRA.

Any withdrawal you make from an IRA is either taxed as
ordinary income or untaxed. (Yes, this means you lose the
tax-favored treatment of long-term capital gains and
dividends.) Any gains and losses you made from trading
within the IRA don't matter.

Only if you have after-tax money in an IRA (because you have
a Roth IRA or made a nondeductible contribution to a
Traditional IRA) do you have any untaxed withdrawals. In
this case, you have to use Form 8606 to keep track of the
nondeductible contributions and figure your untaxed
distribution.

--
Chris Green

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Ask wrote:

- quote -

You don't need to track activity inside your IRA. Unless
you have a cost basis in your IRA, you include any
distribution in your gross income on the line called "IRA
distributions" on your tax return. Your trustee will send to
you a Form 1099-R that will reflect the amount of any
distribution.

If you have a cost basis in any IRA account, you will need
to complete IRS Form 8606 to determine how much of any
distribution is not taxable.

--
Alan
http://taxtopics.net

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ask8y[at]yahoo.com (Ask) writes:

- quote -

See something along the lines of "Are withdrawals taxable?"
in Publication 590. Unless nondeductible contributions have
been made to the IRA, every penny withdrawn is ordinary
income.

- quote -

The only thing you have to track to determine the taxable
amount of withdrawals is undeducted contributions to the
IRA.

Phil Marti
Topeka, KS

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ask8y[at]yahoo.com (Ask) writes:

- quote -

No.

- quote -

You don't do that.

If you have never made any non-deductible contributions to
your traditional IRA accounts, every single dollar you
withdraw will be taxable as ordinary income.

If you have made some non-deductible contributions, you will
use Form 8606 to determine what part of the withdrawal is a
return of non-deductible contributions and what part is
taxable as ordinary income. However, that calculation
depends only on the amount of non-deductible contributions
made and the year-end value of all your traditional IRA
accounts. All your trading is completely ignored.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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- quote -

You need not have kept track of how your investments fared.
You should have kept track of your before tax and after tax
contributions. It's a "no brainer" unless you have basis in
the account (after tax contributions). If you have no
basis, the entire amount of your distributions are taxed as
you take them. If you have basis, a percentage of that
basis, as it applies to the whole, would not be taxable.

Of course, depending on your total income, filing status,
deductions, etc., you may, or may not, have any tax
liability.

..
"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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ask8y[at]yahoo.com (Ask) wrote:

- quote -

All your IRAs are considered a single entity as far as
taxation is concerned. There's no capital gains for
individual investments within it. You're taxed on the
withdrawals as ordinary income, prorated based on the amount
of deductible vs. non-deductible contributions that you
originally made to the IRA.

Just fill in Form 8606 and it will compute the tax.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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Donot laugh if you think the question is trivial. I can not read IRS
publication just too loog.

I am wondering how to pay tax for IRA investment when you retrive from
IRA accout after retirement.
Do I have to track my every trade for future record. When I retrive a
certain
amount money from the account, how do qualify this as my original
contribution or the gain from investment.

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