I received a K-1 for UNG (an ETF on Natural Gas) today, March 21 (yes this is a pain since taxes are already done). Is this a mistake, receiving a K-1 for a trade in a ROTH? The trade was a loss, it was held for 4 days.
On the K-1, it does show profit 0% and loss 0%, even though there was a loss.
Under Section L it shows capital contributed during the year: $27,911 (which is the amount of the trade including my brokerage commission). For withdrawals and contributions it shows the same figure in parenthesis (27,911). I sold UNG for 26,757, (not the previous figure) for a loss of over 1,000. Also, I did not withdraw or take any distributions from my ROTH, but do not have that much left in my account due to other trading losses.
Do I have to amend my taxes? Is this K-1 even correct?
Also, can I ever claim a capital loss from a ROTH? How much am I allowed to get back for capital losses if I lost a lot?
Any help understanding this would be appreciated.
Rachel
{ 3 comments… read them below or add one }
Jessica
If the trade was totally within the IRA account, there is no tax impact. You do not claim a capital gain or loss on it.
Tommy
Any trade inside the Roth IRA has no tax consequences and is not entered on your tax return.
If you withdraw all your investments in Roth IRAs, and you withdrawal is less than your initial investment, the loss can be taken as an itemized deduction of Schedule A, subject to a 2% of AGI floor.
Roland
Be careful with investments that issue K-1’s inside your IRA. It’s possible that you may get a bit of UBTI and have to file a 990-T and that would really ****.
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