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wecutch
Jan 18, 2007, 06:40 PM
I have a 401k accout that I am able to play the stock market with. I have been trading stocks on a short term basis, my question is when I start drawing from this account what tax rate because of the short term trading will I be looking at.

AtlantaTaxExpert
Jan 18, 2007, 07:38 PM
No taxes will be due except for the normal taxes you pay when the funds are distrubuyted to you.

Unfortunately, if you record losses in your 401K stiock trades, you CANNOT deduct them on your annual tax return. Something to think about!

wecutch
Jan 18, 2007, 07:46 PM
No taxes will be due except for the normal taxes you pay when the funds are distrubuyted to you.

Unfortunately, if you record losses in your 401K stiock trades, you CANNOT deduct them on your annual tax return. Something to think about!

Will then my taxes depend only on the income I have. For example if I make 50 thousand a year, I will be tax at that.

AtlantaTaxExpert
Jan 19, 2007, 12:05 PM
Yes, the IRA distributions will be taxed at your marginal tax rate (the rate charged on the last dollar earned in the tax year).