RMD
Instead of selling stock to meet a RMD, can the stock be transferred out of the IRA in kind, giving the option to sell it at a later date , hopefully at a higher price? Taxes would of course still be due now.
Terry Says
In the 2008 crash, it was allowed to take stock as a withdrawal for an RMD, paying taxes on the value of the stock withdrawn. BUT, your IRA custodian is not required to allow you to do this — and may, in fact, restrict such a move.
Also, the withdrawal is valued on the day of transfer, not the day of request. So make sure it does not drop below the value you needed to withdraw.
And I could not find any info about the future “cost basis” of this stock if you later decide to sell it! I would presume that having paid taxes upon withdrawal, you would start a new period and basis for future capital gains tax treatment if the shares rise and then you sell. But this could be complicated.
Read this article.
