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catsmith123
October 9, 2023
Question

I sold stock in a traditional IRA but did not withdraw funds. Will I owe taxes on sale when I withdraw funds?

  • October 9, 2023
  • 2 replies
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2 replies

DoninGA
DoninGA
Employee
October 9, 2023

Yes, when you actually make a withdrawal from the IRA the withdrawal will be taxable income.  The plan administrator will send you a Form 1099-R for the tax year when the funds were withdrawn.  You report the Form 1099-R on your federal tax return.

    VolvoGirl
    VolvoGirl
    Employee
    October 9, 2023

    When you take a withdrawal it is not broken out by sales, interest, dividends etc.   It is taxed as ordinary income and you won't get any capital gains treatment on it.   That is one of  the disadvantages to Traditional IRAs.  

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