If it is inside an IRA, there is no capital gain. All taxes are deferred for qualified funds (IRAs, SEPs, 401(k)s, etc). You are taxed when distributed at your ordinary rate.
Gwjack
Pay attention to qwjack, Steve! The only thing I would add, to make it slightly clearer, is that when you take a distribution, it is taxed at your ordinary rate at that time. This can be very nice, if you are in a lower tax bracket after you retire.
> If it is inside an IRA, there is no capital gain. All taxes are deferred for qualified funds (IRAs, SEPs, 401(k)s, etc). You are taxed when distributed at your ordinary rate.
hmmm, i think you are right. i vaguely recall that my broker was squirrely on it with me when i asked about it several years ago.
well then this might be very good news since i don’t have to worry about a draconian 37% tax just for switching fund indstrument forms. thanks!
(i do eventually want to withdraw enough to cover taxes on what i withdraw, which i have learned from moderately painful experience in the past to be concerned about up front, or else enter a series of rollercoaster waves of compensatory withdrawals for yearly waves of resultant taxes lol).