required minimum distributions of mutual funds
Ed Slott was quoted in a recent edition of the Cleveland(Ohio) Plain Dealer. The quote dealt with using mutual funds within IRA’s to satisfy RMD. The quote was “For distributions from your IRAs, you can move those funds into a taxable account without converting them to cash”
I’m looking for more information/documentation on how this is done
Permalink Submitted by Alan Spross on Mon, 2008-11-17 22:59
Check with the IRA custodian to see which type of transfer method they use, perhaps a non-ACAT transfer since this will be a partial in kind distribution. If the taxable account is with the same custodian it should be very simple to select the holding or holdings that you want transferred to the taxable account. This will save up to two transaction fees or commissions. If the taxable account is with another broker, you will need to check with them to be sure that they maintain a market for the holdings you want to move to them. Often the second broker may not provide a market for the same holdings that you want to move from the IRA.
Your tax basis for the holdings in the taxable account is their share value upon distribution.
Permalink Submitted by charles lore on Tue, 2008-11-18 00:44
Also such in kind distributions are a moving target. If the rmd is $10,000 and you journal enough shares to hit 10k based on yesterdays close you will end up over or under. With todays volatility its best ( on equity funds) to shoot for maybe 3% less or 9,700 and supp the difference with cash.