SIE Exam Question 133: Answer and Explanation

Question: 133

How are capital gains and losses inside an IRA reported on an individual's income taxes each year?

• A. Neither gains nor losses within an IRA reported.
• B. Gains are not reported, but losses are reported on a Form 1099B to be used as a deduction.
• C. Both gains and losses are reported on Form 1099B.
• D. Gains and losses in an IRA are both reported on Form 1099B, but they are not subject to taxation.

Correct Answer: A

Explanation:

Capital gains and losses inside an IRA are not reported on an individual's income taxes each year.