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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16544
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I had an IRA from Lockheed Martin when I was off. I kept

This answer was rated:

I had an IRA from Lockheed Martin when I was laid off. I kept it for a year, then rolled it over into a Self Directed Gold IRA. The initial value was 31K It is now 23.5K. I am 61 yrs old. If I withdraw the entire IRA, do I have to pay taxes on 31K or the current 23.5K amount?

Megan C :

Thanks for your question, and thanks for using JustAnswer.com

Megan C :

How are you today?

Megan C :

When you draw out of your IRA, you are only taxed on what you get out.

Megan C :

So, you will pay tax on the current 23.5K amount, not the amount you put in the account to begin with.

Megan C :

You're not taxed on decreases in the value of your portfolio, fortunately.

Megan C :

Please let me know if you have any questions

Megan C :

If no further questions, please rate as "excellent" so that I may receive credit for assisting you today

Customer:

Hi Megan,

Megan C :

Hello

Customer:

Thanks for the answer. That is somewhat comforting.

Megan C :

I'm glad I could help!

Megan C :

Did you have any further concerns?

Customer:

Quick question - With a self directed IRA, with gold assets as the investment, is the loss tax deductable? I know in a traditional IRA, it isn;t

Megan C :

No, it's not tax deductible. You're simply not taxed on the loss of account value

Megan C :

You couldn't have income excluded, and then write that same amount off - that would be double dipping

Customer:

ok. You did a great job. Thanks!

Megan C :

Glad to hear that!

Customer:

ahhh, I see...

Megan C :

If you would, please rate my response "excellent" using the rating feature along the bottom of your screen

Customer:

I'll be glad to...How do i do that?

Customer:

Ok I see it...

Megan C :

Thanks so much!

Megan C and other Finance Specialists are ready to help you
Thanks, Steve for your positive rating. Please come back and see me, any time you have a tax, finance, or social security question. It was a pleasure working with you today.