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Old 10-04-2022, 10:34 PM   #21
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Fidelity allows in-kind transfer from my IRA to my brokerage account. This transfer needs to be done on phone by a customer service representative. The shares will be assigned a new cost basis.
Interesting but makes sense. I assume the tax treatment is as if you sold in your IRA, made a withdrawal, then rebought in your brokerage, In that case you would pay ordinary income taxes on the full transfer. Is that correct?
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Old 10-04-2022, 10:56 PM   #22
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Interesting but makes sense. I assume the tax treatment is as if you sold in your IRA, made a withdrawal, then rebought in your brokerage, In that case you would pay ordinary income taxes on the full transfer. Is that correct?
Correct, in the context of a traditional IRA with zero basis. Cost basis of in-kind asset is FMV on date of transfer, and I assume but have not personally confirmed that acquisition date would be date of transfer.
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