When you sell a stock for a higher price than you paid for it, you generate taxable income. If it was held for less than a year, the gain would be taxed as ordinary income. It sounds like you may be creating a complicated gain and loss paperwork exercise on your tax return.

Some day if we can get a very simple tax system the vast majority will be able to do it themselves.

My feeling is since tax law changes all the time and really do not want new dealings with the IRS better to pay a good professional.

I still have a few years before dealing with 401k RMD. If you don't mind my asking, can you take the RMD amount out in a year by multiple payments or a single withdrawal? If multiple did you find any pro/con to either method? I imagine this will probably vary by management company.

We take out in multiple payments. Taking out in one is easier I suppose but not that difficult to call Rowe Price and tell them how much to send and how much to withhold.

I would suggest transferring the entire 401K account to a Vanguard or Fidelity IRA. Then, when you need to take your RMDs, they will calculate the amount each year and send it to you anyway you want. Or, if you set up a money market account with them, you can do online transfers of RMD money from the IRA to the MM account at any time yourself. As long as the MM account is not an IRA, just making the online transfer will satisfy the RMD requirement.

TurboTax !!!

I thought you had to choose from a limited number of percentages ie 10%,12% or 15%. I would like to know as well thank you 😊

If you are talking about percentages think you have a choice of what you want.

Would help if you quoted the poster you are referring to help better understand your question.

Withholding Taxes
 

I am a CPA. Many times I have seen withholding taxes on a brokerage statement.
I do have not a sense of how this has been calculated but if you talk to your agent he would probably know the answer. Withholding can be set up on practically anything including the sale of a property ( may be appropriate in the sale of a commercial property).

Haggar

If you are referring to the RMD, I have never heard of specific percentages. As long as you withdraw the required amount within the year, you can make as many or as few withdrawals as you want.

As long the RMD is taken in full by 12/31 of each year the IRS doesn't care.
Some of my clients take their RMD monthly, some take it in pieces and some take it as a lump sum..

Form 5498 issued by the trustee of each IRA advises you what your RMD from that plan is, They are generally issued in March of each year for the preceding year.
If you have multiple IRAs you can add up all of the RMD's for all of your IRAs and take it out of one plan.
I would take 401(k) from each plan as required.

Don't short the RMD - penalty is very severe.

Did learn last year that you have to take specific amount from IRA and same for 401 based on your age based on value of each 12/31 to get to your total rmd.

nothing changes in the tax code about reporting trading activity whether you are on SS or not. Your monthly brokerage statement should tell you your ytd gain or loss. You report the annual gains and losses on your tax return from the 1099B statement.

trading can be summarized as a pay to play and pay scheme

good luck

I take taxes out for both social security and regular IRA distributions. It's a lot easier than doing quarterly payments, with no worries about underpayment penalties. No need for a CPA to charge you for a reminder to pay. Have used Turbo Tax for years .. that's all I need. To each their own..

This is the first year that I am forced to take RMD (required minimum distribution) I will be dealing with Fidelity and T. Rowe Price. Both show the amount I need to withdraw.
When you call to make the withdrawal they ask you if you wish them to withhold taxes.
You do not need to pay the tax until the end of the year. You will not be hit with any penalties so long as you have paid 110% of last years taxes. What to do? Return on safe cash, ie money market is minimal. The choice is pay em now or pay em latter, that is the only choice you have.