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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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Pearl! I have taken an early withdrawal from my IRAs (SEP,

Customer Question

Hi there Pearl!
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I have taken an early withdrawal from my IRAs (SEP, ROTH & Traditional) and want to know how much of my capital losses (carried over from last year) can go against my capital gains (from my IRA withdrawals)
JA: Is there anything else important you think the Accountant should know?
Customer: that's my primary question
Submitted: 10 months ago.
Category: Tax
Expert:  emc011075 replied 10 months ago.

Hi. My name is ***** ***** I will be happy to help you.

The IRA distribution and the additional penalty are not treated as gains. You can take up to 3K of capital loss after you offset all your capital gains.

For instance if you have 4K in capital gains, you can use up to 7K of your capital loss carryover to offset all your gains and claim 3K capital loss. The loss will offset your distribution but not your penalty.

Expert:  emc011075 replied 10 months ago.

I see you read my respond. Do you have any questions? Is there anything else I can help you with today?