USA Cost Basis Of In-Kind Stock Distributions From Inherited IRA

[Ryan1]

I have an inherited IRA.

The assets from the original IRA were transferred to my inherited IRA "in-kind."

The assets consisted of a single stock and a small amount of cash.

So I now have the shares of that stock in my inherited IRA.

I intend to take my distributions from this IRA by distributing enough shares *in-kind* to myself to meet the RMD.

I will then own shares registered to me outside of my IRA that originally came from the original IRA.

My question is what is the basis of the shares I distribute to myself from my inherited IRA?

Is it the original basis in the original IRA? A stepped up basis to the date the shares were distributed to my inherited IRA from the original IRA? Or a stepped up basis to the date I distributed them from the inherited IRA to myself?

 

[Werner Reisacher]

The cost basis of your inherited IRA investments is the same as it was at the time before you inherited it.