Required IRA distribution
I have a self directed IRA that holds real estate. Is the value of the real estate figured into the total amount of your IRA for required distribution purposes? Or is it figured on brokerage account balances?
I have a self directed IRA that holds real estate. Is the value of the real estate figured into the total amount of your IRA for required distribution purposes? Or is it figured on brokerage account balances?
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Permalink Submitted by Alan - IRA critic on Thu, 2016-10-20 23:49
The RMD is for each IRA account is based on the prior year end balance in the IRA, and for real estate that means the market value determined by appraisal or other means. The self directed custodian reports the year end value on Form 5498 or equivalent. If you have other IRA accounts, after determining the RMD for each account, under the aggregation rules you can take the full RMD from the non real estate account if you want to.
Permalink Submitted by lynda johnson on Sun, 2016-11-06 20:16
Very helpful–I could not get an answer the the proper form to use.