RMD Distribution in kind

[Guest Bob Lees]

If an IRA participant takes assets in kind for his required minimum distribution how are the assets valued? Would they be the Fair Market Value average, high, low or closing price?

Thanks.

[Appleby]

The assets are valued at the closing price, for the day the assets leaves the account. If it’s done on a Saturday, Sunday or another day when the market is closed, it is valued as of the close of the next day when the market is opened.

[Guest allancoleman]

And all distributions , required minium or regular , Bob , from a deferred account such as a IRA are taxed at ordinary income tax rates . Add the distribution dollar amount to your income tax return as ordinary income and that'll be your marginal tax bracket for that tax calendar year .

[John G]

Since all assets are taxed at their full value, there is not much point in taking "in-kind". There is no long term capital gains treatment on IRA assets that are removed.

Note, you could readily take cash and purchase the assets outside the account. In this era of very low commissions, the transaction cost is negligible.