Gains v loss question

Can you offset gains in a Roth IRA against losses in a taxable acct?

No, and there would be no reason to try. The Roth funds, including gains are already tax free. You can use taxable account losses to offset taxable account gains. If you have more lossses than gains in taxable accounts then you can offset other income up to $3,000 per year. More losses than that would need to be carried forward to future tax years.


Hi, branmin.

Gains in a Roth IRA or Traditional IRA are not taxable in the year realized, so there’s no value in offsetting them in any form. With a Traditional IRA, you are only taxed on distributions taken in retirement (assuming you do not take any premature distributions), and you avoid any Roth or Traditional IRA penalties if you do not take distributions before age 59 1/2.

Otherwise, year-to-year gains and losses are immaterial to your investing strategy from a tax liability standpoint.

Who notes if the gains were in your taxable account, you could offset them with taxable losses to reduce liability, but there is no need to offset IRA gains…

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Thx guys. Thought so, just checking for total clarity.