Can the distribution/withdrawal be in property -- e.g. stocks or
If yes, what is the cost basis to the Roth IRA owner/beneficiary upon
If there is an unrealized loss on the stock/bond, I assume it cannot
be realized by the Roth IRA owner simply by selling it upon receipt?
No loss can be calculated until all of the owner's Roths has been
Curious why you'd want an in-kind distribution from the Roth? Roth has
no RMD requirement, if you want cash, sell it in the Roth and take the
cash you need.
You can't deposit stock to an IRA or Roth (excepting the stock converted
from tradition to Roth IRA) but withdrawals can be in-mind. Basis is as
of the day of withdrawal. Average of hi/lo that day.
In article ,
Perhaps you believe assets inside an IRA are capital assets and
subject to capital gains tax treatment on the resulting gain or loss?
Not so. Your IRA distributions are ordinary income to the
extent they exceed basis, and for a Roth IRA which has become
Qualified, the tax code treats all distributions as nontaxable.
Basis for a Roth IRA is the total amount contributed or converted.
A Roth IRA becomes qualified when it has been established for at least
five years for contributions and the contributor is over age 59 1/2.
The five year clock starts Jan 1 of the first year contributed.
There is a separate five year clock for conversions, but
once you pass age 59 1/2 this clock is no longer applicable.
For your Roth IRA, if you have distributed all funds of all Roth IRAs,
and your total distributions are less than total contributions/conversions,
the difference is a potential Schedule A deduction, subject to reduction
by 2% of adjusted gross income.