To satisfy your withdrawal request, we will typically have to sell some of your Stonepath DW investments. If those investments are sold at a gain, it will typically generate a short-term or long-term capital gains tax.
However, when you withdraw money from an account at Stonepath DW, we work very hard to minimize the tax liability on any gains. We do this by carefully choosing which Stonepath DW tax lots we sell. In particular, we’ll try to sell lots with losses first (since they generate no tax liability) followed by lots with a smaller tax liability (typically those taxed at the lower long-term capital gains rate) and thereafter followed by lots taxed at the regular long-term capital gains rate.
Distributions from an IRA will be taxed at applicable Federal and State Tax rates. If you wish to have taxes withheld from a distribution, you are responsible for making that election. You are encouraged to consult with your tax advisor when making that selection.
Please keep in mind withdrawals prior to age 59.5 from an IRA or Roth IRA may be subject to a 10% penalty in addition to tax implications of a withdrawal.