Satisfying RMD with an “in-kind” transfer
Recently completed my RMD by doing an “in-kind” transfer from my TIRA to my Taxable Brokerage account.
So my question is .. will the dividends produced by that stock (ETF in this case) be immediately “Qualified” since I owned it for years in the TIRA beforehand OR will the clock re-start for holding purposes ?
Permalink Submitted by Alan - IRA critic on Wed, 2025-10-08 13:36
The holding period within the IRA will not count, therefore dividends paid too soon after the transfer will not be qualified. The holding period is measured around the ex dividend date, so that date will have to be at least 30 days after the distribution from the IRA for the dividend to be qualified. This will be the same effect as if you sold the shares in the IRA, distributed cash and then immediately repurchased in taxable.
If the transfer occurs on or after the ex dividend date, the dividend will be paid to the IRA account and it will not matter if it is qualified or not. If the transfer occurs prior to the ex dividend date, the dividend will be paid to the taxable brokerage account and will only be qualified if the ex dividend date is at least 30 days after the transfer.
It’s challenging to exactly hit your RMD # with in kind transfers. To prevent overshooting or shortfalls of the RMD amount, you would probably have to transfer somewhat less than your RMD and then make up the difference with a cash distribution.
Permalink Submitted by RonC on Wed, 2025-10-08 19:58
Thank You for your help .. again