Follow-up on distributions from a beneficiary IRA

Question

I received some terrific advice here the other day on how to take distributions from a beneficiary IRA while making sure everything showed up in the tax summary.

But now I have a follow-up. The other day, I was dealing with distributions from an IRA’s cash balance. Now, I’ve got a case involving the sale of actual shares.

I downloaded two transactions, both of them SoldX. The first transaction was for 401 shares. That money went to my checking account. The second transaction was for 113 shares. That was for withholding.

Here’s where I’m uncertain. In terms of getting everything to show up in the tax summary, am I supposed to combine those two sales into just one (401+113=514), transfer the gross amount to my checking account and then use a split to separate out the withholding?

And if I do it that way, will I be screwing up any other share-keeping records?

thomas_in_acf · Answer

Thanks. I'll try this.

volvogirl · Answer

Yes you do it the same way as the other distribution.  But first you should change the sales from SoldX to just sold.  Then you will have the cash in your IRA account to transfer to checking like the first time.

thomas_in_acf · Answer

Thanks for your response. I guess I must be missing something. The other day when I was dealing with a distribution (and based on what I thought was the guidance here), I transferred the gross amount to my checking account and then did a split deposit: gross - minus withholding = net deposit. But then, it was a little different because I was only dealing with money from my broker's cash balance. No securities were sold.