Submitted By: Cathy
Answered: July 23, 2013 8:30 am

All of my IRA is in stocks. How do I satisfy my RMD?

You can take distributions from your IRA to satisfy required minimum distributions (RMDs) in cash or in kind, meaning in stock. The option you use depends on what’s in your account and what you want to do with it. You don’t have to sell stock to meet your tax obligation, but be sure that if you’re taking stock, you use the market value of it to figure your RMD.

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Tax Glossary

Revenue ruling

A revenue ruling is the Commissioner’s “official interpretation of the interpretation of the law” and generally is binding on revenue agents and other IRS officials. Taxpayers generally may rely on published revenue rulings in determining the tax treatment of their own transactions that arise out of similar facts and circumstances.

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