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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???
Thanks!

GolfForeU2
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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?


Correct. The holding period for stocks distributed from an IRA begins on the date of distribution.

TMF ExRO
Phil Marti
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Phil Marti(TMF ExRO),

Thank you for your help!

GolfForeU2
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