Sale of stock in IRA; roll to IRA annuity
Client has $300,000 in an IRA invested in stocks. If he sells the stocks, has the proceeds placed in a liquid (money market or cash account) within the the same custodian continuing on as an IRA, then transfers the funds trustee to trustee to an annuity, still in an IRA, is there any taxable event?
Thanks for your input.
Permalink Submitted by Alan Spross on Thu, 2010-09-23 20:15
No taxable event, and usually not even a reportable event, since a TtoT transfer should not generate an 1099R or 5498. Does not matter whether the annuity IRA custodian is the same as the original custodian or not.