REIT dividends counting towards RMD?
Client invests 50k in Hotel Reit.
He receives a 6% dividend per year.
He will be starting his RMD this year.
1. As far as I remember, REIT dividends do not count towards ones RMD for the year, is that correct?
2. when the REIT sells out and issues checks to the shareholders, can that amount be rolled over with the 60 day option or will it be taxed and no chance for rollover?
Thank you.
Douglas
Permalink Submitted by Alan - IRA critic on Mon, 2021-03-15 19:28
I assume these REITS are held in an IRA as an IRA investment. All amounts distributed out of the IRA count toward the RMD. But if REIT dividends are just retained in the IRA, there is no distribution. If there are multiple IRA accounts, then RMDs can be satisfied from any of them. Any combining of IRA accounts should be done by direct transfer, not 60 day rollover since those are limited to just one per 12 month period.