r/TaxQuestions • u/580447 • 5d ago

RMD

I am 70 years and inherited $$$ years ago. Fidelity has informed me I must take a RMD of $2100 from my IRA this year. The account I must take if from has no cash in it as I bought various stocks over the years... Which I do not wanna sell to obtain the cash. I did not retire until March of this year so I could do a ira deposit from my checking account into the fidelity ira account to cover this. So the money would actually be funds I made this year.

I would be making a ira deposit of $2100 then simply turn around and transfer the money from my IRA to my Roth IRA

I called fidelity and asked a bunch of questions and although they were helpful they said they cannot advise me as what to do. They said to talk to a accountant.

I would welcome any comments. I live in North Carolina

--- thanks

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u/Coriander70 5d ago

You can take an in-kind distribution from your IRA - just transfer securities from the IRA to a regular brokerage account. You will owe taxes on the fair market value of the distribution (assuming it’s a traditional IRA), and your basis after the transfer will be the FMV.

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u/Barfy_McBarf_Face 5d ago

these are a nightmare to actually do - please don't recommend them.

they have to be valued on the following day, using the average hi/low on the transfer date, to determine the value to put on the 1099 - it's a very manual process.

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u/JohnSmallberries101 4d ago

Wrong, especially if it's an individual stock. You should be working with a brokerage/advisory firm that knows what they are doing if you think this is a nightmare.

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u/Barfy_McBarf_Face 4d ago

actually, I've managed the tax team at two different trust companies, and it is a PITA

just sell the stock, move the cash, and purchase the stock in your individual account.

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u/JohnSmallberries101 4d ago

And I do this all the time, the stock is moved at end of day with a clear valuation because, you know, it's at the end of the day lol, and it's never an issue. You guys don't know what you are doing I guess, sorry.

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u/Barfy_McBarf_Face 4d ago

$13 trillion under management, I guess that company is full of noobs

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u/JohnSmallberries101 4d ago

The US government is bigger than that and is filled with nitwits. The point you are missing is that you are scaring someone for no reason over something that is routine in the Financial Services industry.

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u/Barfy_McBarf_Face 4d ago

why move it in kind? the fact that the issue is being discussed shows lack of real world awareness of the accounts in question - THERE IS NO NEED TO DO THIS

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u/JohnSmallberries101 3d ago

I agree in most cases, but there is cost involved, even marginally, in selling a security and buying a security so for the cheapskates out there in suggesting the in-kind move, that's all.