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Inherited Ira

I have a inherited Ira that I obtained approx 6 years ago at Vanguard . Last week I exchanged one fund for another this account. My question is was that a capital gain event.? I did not take a distribution just  swap one fund for another like I would in any other ira account. In hindsight I should have inquired before making the move but it looks like I maybe responsible for the capital gains. Any info is appreciated

 

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Re: Inherited Ira

Transactions within the IRA [regular or Inherited] don't have tax implications. RMDs are required from Inherited IRAs [except for 2020] for nonspouse beneficiaries and the stretch rules were also changed recently. 

YBB
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Re: Inherited Ira

Thanks Yogi

When I looked at the Realized capital gains I thought at first I made a mistake. I thought I made a error because it was inherited. Thanks again for reply

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Re: Inherited Ira

Capital gains, interest, dividends....these have absolutely no tax consequences to the IRA owner. The only thing that matters for IRA owners or inheritors, is withdrawals (note: unrelated business taxable income is an exception to this, but for most, this is EXTREMELY rare.).

Assuming the Traditional IRA has no after-tax basis (past years non-deductible contributions) every dollar of withdrawal must be included that year as ordinary income.

BruceM

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