The National Directory of Certified Public Accountants

Ask A CPA - Retirement Planning

Do I Pay Capital Gains On My IRA Account Distribution ?

On traditional IRA's, the gains realized over the years in the form of capital gains, dividends, and 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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