In-kind bond distribution
I have a choice of taking an in-kind distribution from my Traditional IRA of either a Government Agency (TVA) zero-coupon bond; or a Government Agency interest-paying bond that has a market value either above or below par. Once these bonds are moved to a taxable account at a value other than par, will the 1099-INT indicate how much annual interest; amortization of principle (bond with a premium at the time of transfer); or accrual of discount (bond at a discount from par at the time of transfer) to report each year?
Permalink Submitted by Alan - IRA critic on Tue, 2015-04-07 00:41
The 1099 INT should provide the detail needed, but if there are elections you can make then notify the broker ASAP. See the 1099 INT instructions with respect to broker completion of the various boxes in the form: http://www.irs.gov/pub/irs-pdf/i1099int.pdf