Form or RMD from IRA

[Guest tcunagin]

Can a required minimum distribution from an IRA account by in the form of an in-kind distribution of stock?

[mbozek]

yes- If the custodian permits such a distribution- But the stock will be taxed as ordinary income. For tax purposes the FMV of the distribution is amount needed to meet the MRD requirement.

[Appleby]

mbozek

I would word the FMV piece of your response differently.

“For tax purposes the FMV of the distribution is the value of the stock at close on the day the assets leave the IRA”

tcunagin , you want to be careful about requesting such a distribution in kind, as market fluctuation could affect the value (FMV) of your distribution- especially if the IRA custodian takes a few days to process you request and/or your request is submitted via mail.