IRA - Dividend distributions

[mmgoebe]

Question - is it possible to withdraw "dividends only" from a Traditional IRA or Rollover Account, and not be taxed as Ordinary Income, ie,
have dividends generated in an IRA distributed to owner at the Qualified Dividend 15% tax rate.
- Mike G.

 

[GrayHare]

No, some call that an IRA trap of sorts.

 

[Alan]

No, some call that an IRA trap of sorts.

I agree.

It's the same with cap gains. Taxed at 15% in taxable accounts, and as regular income when withdrawn from an IRA.