RMD For Non-Tradable Security?
I owned Winthrop Realty (ticker: FUR) in an IRA . The FUR common stock has converted into a liquidating trust which will expire in about three years and will not be tradeable. The IRA custodian is assigning a zero value to the liquidating trust. They are just using it as a placeholder as distributions come in.
At the end of the year, can the zero value be used for RMD purposes, even though the liquidating trust has a current estimated value of about $9 a share which will drop gradually over time as distributions are paid out.
Permalink Submitted by Alan - IRA critic on Fri, 2016-08-05 23:45
If the custodian assigns 0 value for the end of a particular year and reports that to the IRS on Form 5498, your RMD for the following year will be calculated using that figure. If there are any other hard to value assets in the same account, you may not know how much is assigned to FUR.