The National Directory of Certified Public Accountants

Ask A CPA - IRAs - Traditional

IRA - Distributions, Capital Gains Or Ordinary Income

On traditional IRAs, the gains realized over the years in the form of capital gains, dividends, interest are deferred and not taxable until you take IRA distributions. When you do take the IRA distribution, the amount is considered ordinary income and taxed as such and not taxed as capital gains.

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