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Financial Planning / Tax Strategies


Subject:  Re: Inherited IRA-Minimum Distribution Date:  3/25/2013  2:19 AM
Author:  ptheland Number:  118144 of 127616

I'd much rather wait for the 5 yrs to run, since I invested it in some current downers.

That works to your benefit.

Less income to report currently when you make the withdrawals. You can withdraw the stock now, pay the tax on its current depressed value, then continue to hold to see if it recovers. If it does and you sell then (after at least a year has passed), you get capital gain rates on the increase.

If you leave it in the IRA and withdraw when/if it recovers, you pay ordinary rates on the entire value.

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