IRA REITS going on the public trading platform
as you might know a lot of people bought Apple Reits with IRA’s under the age of 59 1/2.
Apple is now going to place their Reits on the stock exchange to give the clients a chance to get out of the reit.
If they sell their shares that are under an IRA Reit, would they be allowed to use the 60 day rollover exemption?
or
will all of the reit ira be taxed if they choose to sell all shares once they become available to sell on the market?
Thank you,
Douglas
Permalink Submitted by Jose Morales on Mon, 2015-04-27 17:12
Provided that they have not already completed a rollover within the previous 12 months, and they have no RMD requirements, I don’t see why they would not be allowed to rollover any distribution taken from their IRA simply because the funds were generated by liquidating this investment. In fact, there should be no reason why they couldn’t liquidate the investment while still keeping the funds within the IRA, held in a liquid investment such a money market fund (if one is offered by the IRA Custodian).
Permalink Submitted by Douglas Bauerband on Thu, 2015-04-30 15:52
we transferred money out of her apple reits money fund account this year, which would be labled as a transfer correct and not a rollover?but with the reit gong on the market we cant transfer out, we have to sell the reit stock shares which will generate a check to her, this would then be a rollover, correct?
Permalink Submitted by Jose Morales on Thu, 2015-04-30 16:09
A transfer is when funds from an IRA are moved from one Custodian to another. This should not be confused with the use of the word “transfer” to describe moving funds from one account to another at the same financial institution. If the funds moved from within the IRA to an account outside of the IRA, even if at the same FI, the transaction is considered a distribution. If the funds moved from the Apple REIT Fund to another fund or cash account that was still within the IRA then it’s an internal transfer and not reportable. If a check is generated payable to her it would definitely be a distribution, which if deposited to an IRA within 60 days would be a rollover. If funds are going to be moved from one IRA to another by rollover please take care to remember that now only one rollover per individual is allowed within a 12 month period, not per account.
Permalink Submitted by Palvindr Sandhu on Fri, 2015-05-08 23:21
In case of a beneficiary name or some other conflict which one takes precedence Last Will or Living trust.Do you really need to include IRA, Roth IRA and cash account with a broker in a Living Trust or Last Will if you have filed a beneficiarey name with your broker.
Permalink Submitted by Jose Morales on Fri, 2015-05-08 23:36
First and foremost, the beneficiary designated on the IRA documents takes precedence over any will or trust. In fact, if no beneficiary designation is given then the plan documents will dictate who the default beneficiary is, not a trust or will.
Permalink Submitted by Palvindr Sandhu on Thu, 2015-05-14 04:56
I have an IRA account at Vanguard, they accept a designated benefeciary on the ‘normal’ form. On my Ameritrade IRA if I want to pick a beneficiary other than my wife, they want the wife’s signature notorized and stating on the form that she does not want to be the beneficiary. Who is correct Vanguard or Ameritrade?
Permalink Submitted by Alan - IRA critic on Thu, 2015-05-14 16:03
This question was addressed on your other post “IRA Beneficiary”. Since you are apparently in a common law state, Ameritrade is playing it safe, possibly to avoid exposure to spouses moving from a community property state to a common law state. In that case, the balance of the IRA at the time of the move can be construed to remain community property after the move.
Permalink Submitted by Palvindr Sandhu on Sat, 2015-05-16 06:39
Thanks Alan. I do live in California witch is Community Property.
Permalink Submitted by Palvindr Sandhu on Sat, 2015-05-16 06:43
If my daughter inherits my Rollover IRA, wil she have to cash it after I die. What is the law in case she inherits my Roth IRA.
Permalink Submitted by Alan - IRA critic on Sat, 2015-05-16 15:14
She will have to take annual RMDs over her life expectancy using Table I. I assume she is named directly as beneficiary on the IRA.
Permalink Submitted by Palvindr Sandhu on Tue, 2015-05-26 08:08
1. Please clarify, if my daughter inherits my ROLLOVER IRA after my death, will she have to cash out the account.2. If she inherits my ROTH IRA will she have to cash out the account or have to take RMD over her life expetency.
Permalink Submitted by Alan - IRA critic on Tue, 2015-05-26 16:08
If she is directly named as beneficiary on these accounts, her RMDs are based on her life expectancy for both the inherited TIRA and inherited Roth IRA.