Location: Westland, Michigan, United States

Graduate of Walsh Institute Of Accountancy (Now Walsh College) Michigan in 1959. Retired in 1987, but still active in the profession **World War II Veteran (Pacific) **PHONE 734-261-1979 **E-MAIL **(Domain Name CPASENSE Registered) **Mentioned in the Journal of Accountancy, SmartPros, Tax Prof Blog, CPA2BIZ, CPA Journal, AccountingWEB, CPATrendlines & More **Search Accounting Blogs: (Includes cpasense)**TOPICS - FINANCE - FEDERAL & MICHIGAN TAXES ** Making Sense Of Your Finance & Taxes

Thursday, May 25, 2006

Losses On Retirement Accounts

Losses incurred inside retirement accounts, such as 401(k)s IRAs and the like, cannot be claimed as a loss on your income tax return. That's because the money in the plan went in on a before-tax basis (i.e. you were not taxed on the money), so you cannot claim a loss.

When your employer kicked in the match, you did not report that deposit.

The only time you can claim a loss on a retirement account is when you have after-tax contributions and, when all accounts are closed, the total distributions are worth less than the after-tax contributions.


Post a Comment

<< Home