IRA
I transfer long-term held stock from my IRA to my taxable brokerage account to satisfy my RMD and pay the tax on the transfer from funds held in my taxable account.
1. Does such a transfer provide the stock with a stepped up basis?
2. If a stepped up basis takes place, how long must the stock reside within the taxable account before they earn long-term status?
Permalink Submitted by Alan - IRA critic on Fri, 2021-04-23 22:44
Yes, the basis is the share value upon distribution from the plan, and the holding period starts on the date of distribution, so additional gains in the first year will be taxable at ST Rates if sold within that time. It may take some checking to figure the basis of each holding if there were different holdings distributed. it is also difficult to exactly meet your RMD. You normally would have to undershoot and fill the difference with a cash distribution.