http://www.wsj.com/articles/moving-business-shares-out-of-an-ira-1418660918

The above article states that an advisor for a couple had them purchase the shares of a company that were held within their self directed IRAs so the company could then be reorganized into an S-corp for more favorable tax treatment of future gains. I could see an in kind distribution of the shares to the couple, which would then be a reportable distribution, but I don’t see how they could effectively swap the shares within the IRA for cash by having the IRA sell them the shares directly.

“So Mr. Reiner suggested pulling the shares out of the IRA and then reorganizing the company’s ownership from a C-Corporation into a more tax-efficient structure. To begin, the couple had to buy their shares back from their IRA.

The value of those shares had increased to $240,000. Fortunately, the couple had accumulated enough savings outside their retirement accounts to purchase the equity in the business and leave the cash equivalent in their IRA.”