The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/washington-mutual-1099-b-from-ira-30592750.aspx

Subject:  washington mutual 1099-b from ira Date:  3/16/2013  6:36 AM
Author:  crre Number:  118064 of 120784

i am the trustee of a trust for the benefit of my sister. there is an inherited ira the beneficiary of which is the trust.

background to my question:

prior to the washington mutual bankruptcy in 2008, the ira held washington mutual bonds in a quantity of x. happily, those bonds were ultimately paid in november 2012. for reasons beyond my understanding, payment happened in two parts: 90% of the bonds were redeemed for cash inside the ira, and 10% were paid by check directly to the trust (so outside of the ira).

question:

i have received a 1099-b for the 10% paid directly to the trust, with the amount paid appearing in box 2a (stocks, bonds, etc.). the instructions say to report this amount on form 8949 as explained in the instructions for schedule d.

however, because the bonds were held inside an ira, i think i should (or at least may) instead treat the amount like any other ira distribution and show it as income. is this correct?

note: the reason i want to treat it is income is for simplicity. the amount is small, and treating it as income will not incur additional tax liability.

tia,

c.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us