"Phil Marti" <prm20871[at]verizon.net> wrote:
- quote -

If the stock is owned by an IRA the full value should be subject
to tax when it comes out. There is no deduction of basis
because the basis was paid for by pre-tax funds.

Stu

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"Jeff Wisnia" <jwisnia[at]conversent.net> wrote:

- quote -

Average of high and low for the day.

- quote -

The distribution value (see above) becomes the cost basis
going forward. The distribution date becomes the acquisition
date for determining the future holding period.

Ira Smilovitz

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Jeff Wisnia wrote:

- quote -

For stocks, the price is the average of the high and low
prices for the day of transfer. You will be taxed on that
price times the number of shares transferred.

- quote -

Your "cost" for subsequent sale is the same as the transfer
value. Your holding period begins on that date also.

The net tax effect is the same as if you had sold the shares
in the IRA account, received the cash, and then repurchased
the shares in your taxable brokerage account.

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"Jeff Wisnia" <jwisnia[at]conversent.net> wrote:

- quote -

Correct.

- quote -

Sorry, I don't know. I'd call the custodian and ask.

- quote -

The cost is the value (see above) and the acquisition date
is the date of the transfer. See IRS Publication 590.

--
Phil Marti
Clarksburg, MD

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I'm going to be taking my first IRA distribution before the
end of 2006. A short article in the latest issue of "Bottom
Line Personal Edition" says that IRA distributions don't
have to be made in cash, they can also be made by
transferring shares out of the IRA.

As there's mostly stocks I'm happy with and minimal cash in
my IRA, I'm keen on the idea of avoiding broker's
commissions by transfering some stock from my IRA brokerage
account to my regular taxable brokerage account with the
same firm.

I assume that the dollar value of the distribution is
determined by the number of shartes and the stock's price on
the date it's transferred out, but how should that price be
determined? (Opening or closing, max or min that day?)

And, what would be the those shares' "cost" and "aquisition
date" for the purpose of calculating capital gain or loss
when and if they are subsequently sold?

Thanks guys,

Jeff

--
Jeffry Wisnia
(W1BSV + Brass Rat '57 EE)
The speed of light is 1.8*10^12 furlongs per fortnight.

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