In-Kind Distributions

Many people believe that when they take distributions from their IRA or 401(k), they must take out cash. This isn’t the case. You can distribute assets, or even parts of assets. You could have an LLC in your retirement account that owns one or more investments. You can distribute any of those assets, or even distribute a portion of the LLC itself.

If you are going to distribute all or a portion of the investing entity, you need to have the entity itself valued. This value will the total of the values of each asset the entity owns, and the cash.