Transfer stock in an IRA to a traditional brokerage account.
I purchased a stock in my IRA for $8,000. It’s value is now $6,000 and I want to transfer it to a traditional brokerage account within the same broker. I know I cannot claim a loss on the $2,000 but is it true I will be taxed on the $6,000?
Permalink Submitted by Alan - IRA critic on Wed, 2023-07-12 23:26
Yes, distributions from an IRA are subject to tax, except to the extent you made non deductible IRA contributions reported on Form 8606. Your cost basis in the brokerage account will be 6000, and the holding period starts on the day of distribution from the IRA. You will get a 1099R for 6000 showing as taxable, but you can override the taxable amount using any IRA basis you have per above.