Welcome to the board, Metro.*
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Originally Posted by metro9
(1) if I sell the stock in the ira account, are the cash proceeds subject to capital gain tax?
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No, IRA transactions are tax-free when the proceeds stay in the IRA.* It's moving the proceeds out of the IRA that makes them subject to income tax.
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Originally Posted by metro9
(2) If I take the cash as distribution, will it be subject only to ordinary income tax?
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Yup, provided that you're at least 59 1/2 years old.* This is a minefield of exceptions, though, so read up on the subject before you start taking money out of the IRA.
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Originally Posted by metro9
(3) If I transfer the appreciated stock to a taxable account, the dollar value of the stock will be considered distribution which will be taxed as ordinary income?
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Transfers such as you describe aren't done between IRAs and taxable accounts.* You'd have to sell the appreciated stock, transfer the cash from the IRA to a taxable account (subject to the age & distribution restrictions!), and purchase the stock.* The amount of money that's transferred is income.
Quote:
Originally Posted by metro9
(4) if I transfer the stock to a taxable account and pay the ordinary income tax on the distribution, can I keep the stock for further gains and use the distribution price as the cost basis?
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The transfer is actually a sale, and once you've taken the cash out of the IRA you can do whatever you want with it (subject to taxes & penalties).* But the cost basis will be the price you pay for the new investment.
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Originally Posted by metro9
Where I can get info on such questions?* Thanks
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There are a few places:
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IRS Pub 590, the rulebook.
- A library copy of Ed Slott's book
"The Retirement Savings Time Bomb".
- And finally, posting these questions at
Ed's discussion board, where experienced & published CPAs live to answer any IRA question no matter how basic or obscure.