I got it as an IRA distribution
| You can take a distribution from your |
Traditional Individual Retirement
Account in the form of either cash
or investment securities.
Taking your distribution in the form
Any time there is a severe stock market decline (such as our current stock market If you choose to take your distribution in the form of a bond, note, or mutual fund The holding period is determined by the original acquisition date of the stock, bond,
rout) is an ideal time to take an IRA distribution of stock that is severely depressed.
You pay tax on only the fair market value and the subsequent rebound in value will
be taxed at the more favorable capital gains rates rather than the ordinary marginal
rates that will eventually apply to all gains inside the IRA when you take future
If you choose to take a distribution in the form of stock, your cost basis per share
is the average trading price on the date of distribution from your Traditional IRA.
This is the amount that will be reported to you as taxable income from IRA
distributions on your Form 1099-R at the end of the tax year.
shares, the same principles apply. Your cost basis after the distribution will be the
average trading price for the bond, note, or mutual fund shares on the date of the
note, or mutual fund when it was purchased inside your Traditional IRA.
If you choose to take your distribution in the form of a bond, note, or mutual fund
The holding period is determined by the original acquisition date of the stock, bond,
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