Cost-Basis in IRA ?
My VG IRA maintains detailed cost basis for stocks purchased within. I am wondering why, since nothing is taxable unless I remove .. correct ? To restate, If I trade within the IRA, this is not a taxable event, right ?
Oddly, in my “taxable” brokerage account, they insist that these are non-covered since they originated from my company ESOP.. even tho I just opted to buy this “real stock” in conjunction with my 401k LSD.
Permalink Submitted by Alan - IRA critic on Sun, 2021-05-16 16:54
Right. Trades within your IRA have no tax impact. Custodians only show you the individual holding cost basis because their systems can, but the only value to you is that you know how your investment has performed since acquiring it. IRA basis can only come from making non deductible contributions or rolling in qualified plan after tax contributions.
So you have NUA shares in your taxable brokerage from a qualified LSD, and you bought even more of these shares in your IRA? Diversification issues?
Permalink Submitted by RonC on Sun, 2021-05-16 20:17
NUA shares are spilt across three (3) S&P-500 companies. “Stocks” in my IRA are ETFs that often include those companies again, which IS a risk, but lessened when I sell-off some NUA for more income at a better tax rate.