How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Stephen G. Your Own Question
Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 6222
Experience:  Extensive Experience with Tax, Financial & Estate Issues
30050794
Type Your Tax Question Here...
Stephen G. is online now
A new question is answered every 9 seconds

I have a tax deffered IRA where I am able to trade stocks.

Resolved Question:

I have a tax deffered IRA where I am able to trade stocks. Despite the fact that the moneys in the account are tax deffered, am I still liable for the usual capitol gains taxes
if I sell a dividend bearing account with out holding on to that stock for what I understand is the required 61 days?
Submitted: 5 years ago.
Category: Tax
Expert:  Stephen G. replied 5 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Stephen E. Grizey :

No. All transactions within the IRA are exempt from current taxation. Only upon withdrawal does the regular tax arise, unless of course you're dealing with a Roth IRA which may mean no tax if the other Roth IRA rules are met.

Customer:

Does this mean that upon withdrawl I WILL be held liable for capitol gains taxes which may have been incurred, for example 10 years earlier?

Stephen E. Grizey :

NO. Not at all. You'll never pay capital gains tax on the transaction. You'll simply pay any tax due on the withdrawal of funds from the IRA.

Customer:

Thank you!

Stephen G. and 2 other Tax Specialists are ready to help you