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?
Permalink Submitted by Alan - IRA critic on Tue, 2020-08-11 21:16
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.