Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Can anyone shed some light on this situation?

After looking to distribute individual securities out of an inherited IRA(3rd of 5 years), I am now wondering how the year 2001 distribution would be considered with the NEW 5 year capital gains rules.
If the distribution is done after Jan.1,2001, then would the IRS consider it the same as if the stock had been purchased after Jan. 1,2001 ? The income taxes would be paid on the distributed value.
Is it correct that if the stocks are thereafter held for 5 years or more in the taxable account, the difference could be 18% vs. 20% capital gains rate, at a 28% tax bracket???

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.