Partial in kind rollover | Ed Slott and Company, LLC

Partial in kind rollover

If a client takes a distribution of 200 shares of stock from their IRA, I understand that the same property must be rolled back if they choose to rollover, but do they have the option of a partial rollover of the shares e.g. could they rollover 100 shares?

Yes, they could roll back any number of the distributed shares up to 200, and keep the remaining shares as a taxable distribution. Whatever number of shares are NOT rolled back will have a cost basis of their value on the date of distribution when they eventually sell those shares.  The shares that ARE rolled back will be reported as a rollover also based on their value upon distribution regardless of price changes before rolling them back. Rolling back 1/2 the shares will make the distribution 50% taxable in relation to what would have been taxable if there was no rollover.

 

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