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When is an IRA distribution technically made?

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Taxing Matters

Overtaxed Member
On the date the withdrawal was initiated or the day the money was received?
Thank you
Typically it is the day the trustee actually takes the money from the account and sends it to you, i.e. the day the check is sent, the account transfer is made, etc.
 

jraj2255

New member
Thanks for the help.
The IRA distribution was made via ACH withdrawal.
I initiated it in late June, though it shows on my brokerage statement: 07/02/18 Distribution ACH WITHDRAWL $xxx
The money was received on July 3rd.
Should I go with the brokerage statement date?
 

LdiJ

Senior Member
It involves death, and inheritance and who is liable for what portion of the tax burden (to put it simply, without writing a few paragraphs).
The exact dates are very important given the situation.
It would be the date the brokerage issued the payment. Absent you explaining the situation that is the best anyone can tell you.
 

Taxing Matters

Overtaxed Member
The IRA distribution was made via ACH withdrawal.
I initiated it in late June, though it shows on my brokerage statement: 07/02/18 Distribution ACH WITHDRAWL $xxx
The money was received on July 3rd.
Should I go with the brokerage statement date?
The date of distribution is the date the trustee took the funds out of the IRA and wired the funds to you. That would appear to be the July 2 date on the brokerage statement.
 

FlyingRon

Senior Member
Well, I'm not sure you can answer that without knowing just why the date is important. If it's purely to decide when funds were removed from the IRA, then TM is right. If it involves taxability of the transferred funds, it might indeed be the date they entered the destination. I'm curious where the July 3 date came from. Most ACH transactions process in minutes.
 

FlyingRon

Senior Member
If he's talking about tax accruing for the entity to which the funds were transferred (assuming it's a different entity than whomever holds the IRA).
 

Taxing Matters

Overtaxed Member
If he's talking about tax accruing for the entity to which the funds were transferred (assuming it's a different entity than whomever holds the IRA).
Ok, but in that case the question would not be the date of distribution, as the OP asked, but the date of contribution to the new fund.
 
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