In Kind Roll Over IRA Contribution
Can an in kind retirement account withdrawal be rolled over (either to a different retirement account or to the retirement acct from which the distribution was taken) ? A retirement account distributed 100 shares of XYZ company valued at the time of distribution at $ 10,000. 30 days later, those 100 shares are worth $ 5,000. Can the 100 shares of XYZ be rolled over in kind to a retirement account? The original in kind distribution was made via a journal of the shares from a retirement account to a family trust account (both accounts at the same stock broker).
Permalink Submitted by Alan - IRA critic on Thu, 2020-04-02 16:01
An in kind distribution from an IRA can only be done with the same property distributed. The shares cannot be sold and cash rolled back. Therefore, in this case XYZ must be rolled back in order to complete a rollover at all. The rollover can be either to the distributing account or a different IRA. In this case, the value at the time of the rollover contribution will only be 5000, but a full rollover can be reported on Form 1040 that will erase the 10,000 of taxable income.