peters@cubsvax.UUCP (04/02/84)
Not only wouldn't one be able to write off losses incurred via high-risk
investments in an IRA until one was in a lower tax bracket; in addition,
one would even then qualify only for long-term loss, which is far
less advantageous than short-term.
{philabs,cmcl2!rocky2}!cubsvax!peters Peter S. Shenkin
Dept of Biol. Sci.; Columbia Univ.; New York, N. Y. 10027; 212-280-5517jhh@ihldt.UUCP (John Haller) (04/03/84)
There is no such thing as long term or short term loss on an IRA. Since no taxes were paid on the IRA funds, the ENTIRE amount is taxable upon withdrawal. No long term capital gains at lower tax rates are recognized. If you suffer a loss on an IRA investment, that means that there will be that much less to pay taxes on when it is withdrawn. When you lose money on an IRA, that money is gone forever. Uncle Sam does not subsidize your loss. John Haller