« on: January 02, 2014, 09:11:33 AM »
How should I report a required minimum distribution (RMD) transaction between one of my tax deferred IRA accounts (separate portfolio) and my taxable account (separate portfolio)? The RMD transaction was a distribution/transfer of shares in kind, not a cash withdrawal and redeposit.

Specifically x shares of Vanguard abc fund in a Vanguard IRA account were transferred to my Vanguard taxable account. The x number of shares transferred was determined on the date of transfer so that the aggregate value of the transferred shares was equal to my previously determined 2013 RMD. The transfer out of the IRA account was not a sale/exchange; there is no taxable capital gain/loss. I report on my 2013 tax return the entire amount of the 2013 RMD as ordinary income (IRS Form 1040, line 15a, IRA distributions).

The transfer/deposit of the x shares of Vanguard abc fund in my taxable account is similar to a purchase; the basis of those shares is equal to their value on the transfer date. There is no carryover of the basis that existed for those shares in the IRA account at the moment of transfer.

There doesn't seem to be a transaction type in IAM to specifically address this situation.

I would appreciate thoughts and suggestions.


Michael G Smith
IAM Registered User

Re: RMDs
« Reply #1 on: January 02, 2014, 10:25:38 AM »

Use the transfer feature under the edit menu to transfer shares between accounts.  You can use original basis or current market value on date of transfer for the basis of shares transferred.


Re: RMDs
« Reply #2 on: January 02, 2014, 11:28:48 AM »
Great! Thanks for the prompt and helpful reply.