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illiquid assets

Illiquid Assets and RMDs

Tis the season. Yes, it is the holiday season, and it is also the season to take RMDs. RMDs are back for 2021 after being waived by the CARES Act for 2020. With the return of RMDs come questions. One question we have been getting a lot this year involves RMDs when IRA investments are illiquid.

ROTH CONVERSIONS OF ILLIQUID ASSETS AND ROTH CONVERSIONS TO SATISFY RMDS: TODAY’S SLOTT REPORT MAILBAG

I have self-directed traditional and Roth accounts at an SDIRA Custodian. Can I do a Roth conversion of an illiquid asset from the traditional to the Roth account? The investment I want to convert is a debt-only asset (no equity component) generating a fixed 8% dividend. It has a consistent FMV from year to year. I know I will pay tax on the conversion. I am 75 and retired. Thank you,

Illiquid IRA Assets and Satisfying Your RMD

An advisor called about a client who has a bond in his IRA that is in default. He has not taken his required minimum distribution (RMD) from that IRA account for the last three years because the bond is illiquid at this point in time. He does have other IRAs. What should he do?

How to Take Your RMD When Your IRA Holds an Illiquid Asset

What happens if your IRA holds an illiquid asset and you are over age 70 ½? Can you skip the required minimum distribution (RMD)? The answer to that question is, no, you cannot skip the RMD. It is called a required distribution because the distribution is required. Here are three options for satisfying the RMD from the IRA with the illiquid asset.

Question of the Week: Illiquid IRA Investments

This week the Ed Slott and Company IRA Discussion Forum featured a question about the illiquid investments in an IRA and how they may affect RMDs. Do you have these types of investments in you IRA? Read on to find out some of the major items for which you need to be aware.

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