Accounting for Losses

For those who participate in the Benefits Board’s equity (stock) accounts, you may suffer a loss in any particular year. We are sometimes asked if you can claim, or deduct, that loss on your tax return. The answer is simply NO!

Since your accounts at the Benefits Board are a part of a tax-sheltered investment vehicle (specifically, a 403(b) account), you cannot deduct losses that you suffered in the stock market. Just as you are not required to claim the gains (or interest earned on your account), you cannot deduct losses when those occur. Other than the tremendous tax advantages of contributing to a tax-sheltered account, your account with the Benefits Board has no tax consequences until you start making withdrawals from the account.

About benefitsboard

Art Rhodes is the President and CEO of the Church of God Benefits Board, Inc. - the administrator of the Ministers' Retirement Plan and the Church Loan Fund, Inc. The corporate offices of the Benefits Board are in Cleveland, TN.
This entry was posted in Form W-2, Internal Revenue Service, Retirees, Retirement Contributions, Retirement Distributions, Stock Market, Tax Information. Bookmark the permalink.

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