Suppose taxpayer owns 100 shares of XYZ Corp. in his IRA. He is over 59-1/2. He has owned the shares in the IRA for ten years.
suppose taxpayer distributes the shares out of the IRA to a taxable account. I know the distribution amount is the value of the shares at the close of business on the distribution date, and that his new basis is that same amount.
The question is, does he get to tack on the ten-year holding period, or does the holding period for the shares in the taxable account start over from the date of distribution.
Thank you