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    wecutch's Avatar
    wecutch Posts: 2, Reputation: 1
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    #1

    Jan 18, 2007, 06:40 PM
    401K short term taxes
    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's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    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's Avatar
    wecutch Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 18, 2007, 07:46 PM
    Quote Originally Posted by AtlantaTaxExpert
    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's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    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).
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