Bankrupt IRA and Minimum Distribution

What options are available when an IRA is in bankruptcy with no funds available for the MDR?



If there are no liquid investments to complete the RMD, shares of the bankrupt investment can be distributed in kind. The IRA custodian must determine a valuation for the shares. If that value is not high enough to satisfy the RMD, with all IRA investments distributed, the IRS will not levy a penalty.

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