Are the tax implications of taking a required minimum distribution from an inherited IRA the same if I take it as cash or put it into a brokerage account?

by Richard L. Ward, CPA | Jul 11, 2019

I have an inherited IRA from which a required minimum distribution is taken each year. Is my tax liability the same if I take it as cash or put into my brokerage account?  

Not considering any other income, yes. Your tax liability will be accounted for in the same way as if you took the distribution in cash.

For more resources, check out PICPA’s Money & Life Tips, Ask a CPA, or CPA Locator.

Answered by: Richard L. Ward, CPA, is president and CEO of Capital Configuration LLC in Pittsburgh.

The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
Financial FAQs

Search the most frequently asked finance and accounting questions and read the responses from PICPA members. Always consult a CPA before taking action.