i have been doing some reading, and have been learning that if i gift my brother a stock, i cannot gift it in kind directly from my IRA. I have to transfer it in kind first to my non retirement account, and cost basis starts from the time of transfer. I also realize that the stocks can be used for my yearly distribution.. I understand that I can immediately ‘gift’ to my brother, who is in the same brokerage. It is a limited partnership, and he has done his research. Has anyone in the audience transferred stocks this way?
This looks correct to me. The cost basis is established when the stock comes out of your Traditional IRA. You can then gift the stock to your brother subject to the Annual Gift Exclusion Limit, which is currently $19k.
Thanks for the info. I expect schwab has a form for the gifting, as he is in same broker.