2018- 11/14 Does a stock market drop have an immediate tax effect on the finances of people with traditional IRAs who aren’t yet taking required minimum distributions (RMDs)? No, because losses and gains aren’t recognized in these accounts. However, there may be tax implications for taxpayers already taking RMDs from traditional IRAs. They can’t reduce their 2018 RMDs to account for a decline in an IRA’s market value. Reason: Each year’s RMD generally is determined by applying a life-expectancy table factor to the IRA account balance as of the end of the previous year.


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