Basis for stock transfer from IRA to non-IRA account
I am 62 years old. I have an IRA, a Roth IRA and and regular taxable account at a brokerage. If I transfer stocks from my IRA to my regular account do I keep the basis that was established when it was purchased in the IRA account ?
Permalink Submitted by Alan - IRA critic on Tue, 2015-11-10 00:06
No. The basis of any securities transferred out of your IRA to your taxable account is the value of those securities on the date of distribution. This same value with respect to in kind securities distribution is included on the 1099R reporting the distribution. Your holding period also starts anew on the date of distribution.