restricted stock
A company I have in my Roth IRA is going to make a dividend of restricted stock(not negotiable for a year). And they will accomplish this in certificate form directly to me. Should I try to get this into my Roth IRA or am I just better off claiming this as a qualified ROTH IRA distribution? I’m already over 59 and a half. Just want to make darn sure I don’t end up with a prohibited transaction.
Permalink Submitted by Alan Spross on Thu, 2011-01-27 23:13
If your Roth owns the shares, it seems like the dividend should follow the ownership. There also might be unintended consequences if you report a Roth IRA distribution without a 1099R to support it, not to mention the question of whether issuing the dividend directly to you violates some securities law provision. Is there any question about the holding itself being prohibited, eg a disqualified person owning majority interest?