Is There a Tax Deferred Distribution?

In addition to a likely having to pay tax upon taking the distribution, there could also be a ten % early withdrawal penalty. All money that comes out is is taxed at your ordinary income tax rates. Whatever you can buy and sell, whether its a gain whet ther's lost, doesn't matter. It doesn't matter what goes on inside that bucket while the money's in there. For all intents and purposes, no implications, no tax implications.