TRADING ACCOUNTS
After you have completed all your trading for the tax year, done all your re-assignments and lot optimization, and all tranactions settle, you will receive a Form 1099-B for your trading account and other information on interest, dividends, etc.
IRA’s AND 401K’s (Hopefully not 101K like many people)
In general IRA’s and 401K’s are not taxed on gains and losses but on the distributions. This means that the money you take out of the pension presumably after the appropriate age is then taxable unless it is a ROTH IRA where you pass the tax up front and then all of your gains or loses are totally tax exempt. If you do the ROTH over many decades the can be quite a winfall getting tons of tax free money because you paid the tax up front on a much smaller amount of money and now it can grow without ever incurring an further tax liability.
ALSO DON’T FORGET TO CONTRIBUTE TO YOUR IRA’s AND 401K’s ESPECIALLY 401K’s IF YOU GET AN EMPLOYER MATCH
A big benefit on IRA’s and 401K’s is that you can reduce your taxable income by putting as much money as allowed by law into your pension to have it work for you. There may be other opportunities such as health and education accounts. But that is not my area of experience. I strongly encourage you to learn and use every opportunity to use a legal methods to lower your tax liability and invest in your self and family the best way possible.
NEXT IS TRADER TAX STATUS