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Asked 9/23/2009

Short term capital gains in an IRA

Turned over a 401K to a traditional IRA 2/09. Are there short term capital gains from investments that I have bouaght and sold under 1 year old if I do not withdraw the IRA funds?

 
 
 
 
 
Answers

Answer 1/1 - Submitted 9/24/2009

Transactions within a 401(k) or an IRA are not taxable. There are no tax consequences in these accounts until funds are actually withdrawn (not rolled over), at which time they are taxed as ordinary income and not as capital gains.

 
 
 
 
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