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trilogy1943
January 19, 2023
Question

Are equity based ira losses deductible and who should I contact?

  • January 19, 2023
  • 1 reply
  • 0 views
my wife is 77 and on ssi. her ira account lost appox 65,000 in the equities market before she pulled the money out and put it back into a traditional ira account.

1 reply

VolvoGirl
VolvoGirl
Employee
January 19, 2023

No.  She will just have less income to pay taxes on when she takes it out.  Has she been taking her RMD each year?  Did she put it back within the 60 days?  If there was tax withholding taken out she needed to to replace the withholding when she put it back or the withholding becomes a distribution and taxable.  

    fanfare
    fanfare
    Employee
    January 20, 2023

    @VolvoGirl 

    ' She will just have less income to pay taxes on when she takes it out. "

     

    Are you saying her tax will be less because her account is smaller now.?

    Not much consolation for a loss of $65,000. 

     

    VolvoGirl
    VolvoGirl
    Employee
    January 20, 2023

    Basically.  You still pay tax on any distributions like the RMD but you will be taking less distributions unless the account goes back up.  @dmertz 

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