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- Heather
The gains are taxable. But you can also sell lots that have lost money to offset those gains. So if you pull out $1000 but the gains on that money was $100 then you pay capital gains on the $100.
KarlFrom a deferred income account (e.g. 401k) yes.
From an after tax or tax free account (e.g. Brokerage, HSA or Roth) no.FrankNo. You do not get taxed on withdrawals from that type of account. You get taxed on capital gains whether withdrawn or not.
Lindaif its from an after tax brokerage account, it is not income but you will be taxed at the capital gains rate.
JosephIf it’s in something other than Roth it will most likely create a taxable event, but that doesn’t mean you will owe taxes.
That all depends on deductions, amount withdrawn, and others.
Also, check out: I’d like to open my first brokerage account to help me earn passive income through investing
CodyNo, withdrawals from brokerage accounts are not taxable.
But capital gains and dividend + interest income are taxable within the account, whether they’re withdrawn or not.
RonNo! If the money is in a money mkt, then no taxes are due. If the money is invested in stocks that have gained vakue, the taxes are due on the GAINS.
JakeNo, the amount that is gains is taxable, not the total.
You invest $100, it grows into $200, you withdraw $200. You owe capital gains taxes on $100. It could be short term, or if you don’t move your investments around, long term and there’s a pretty generous tax free initial amount.
TrevorIf selling from your brokerage account is your only income, you might not have any taxes unless it’s a lot of money. First, only the gains are considered taxable income. But more impactful, you only pay capital gains tax if your taxable income is over 47k ish if filing single and 94k if married.
So, with the standard deduction you’d need something over 60k (or 120k married) in gains if that is truly your sole income.
Otherwise, you’ll pay zero.
Explore these too: Is it better to set up my taxable brokerage account as an individual owner or joint with my wife?
GoldenDepends on the account.
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