Permalink Submitted by Denise Appleby on Thu, 2008-01-17 17:06
You can take a distribution in-kind…stocks, bonds mutual funds etc.
The value of the distribution is usually the value of the assets as of the close of business, on the day the assets leave the IRA.
Permalink Submitted by Alan Spross on Thu, 2008-01-17 21:33
Yes, same for 401k plans.
The value Denise referred to would be the tax basis for the shares in a taxable account, although the tax on the distribution may be based on a lower amount if some of the plan cost was paid for with after tax contributions.
If the shares are then rolled into any plan that would accept them, the same number of shares would be needed to complete the rollover, NOT the equivalent number of shares to equal the value of the original distribution.
Permalink Submitted by Denise Appleby on Thu, 2008-01-17 17:06
You can take a distribution in-kind…stocks, bonds mutual funds etc.
The value of the distribution is usually the value of the assets as of the close of business, on the day the assets leave the IRA.
Denise
Permalink Submitted by Dennis Prout on Thu, 2008-01-17 18:38
Ok. Does this apply to 401(k)’s as well, for investments other than company stock (NUA)?
Permalink Submitted by Alan Spross on Thu, 2008-01-17 21:33
Yes, same for 401k plans.
The value Denise referred to would be the tax basis for the shares in a taxable account, although the tax on the distribution may be based on a lower amount if some of the plan cost was paid for with after tax contributions.
If the shares are then rolled into any plan that would accept them, the same number of shares would be needed to complete the rollover, NOT the equivalent number of shares to equal the value of the original distribution.