If my Req. Minimum Dist. is $40K for 2015 and I pull out from my IRA account Gold coins that were valued at 40K on 31 Dec 2014, and the value is 42K the date they ship them to me, what value would I put down on my 4th quarter EST Tax Form?

That would depend on your total income picture for 2015.

Further, the IRA custodian SHOULD withhold a set amount from the distribution for taxes. Generally, it is 20% of the distribution, or $10,500.

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Originally Posted by AtlantaTaxExpert

That would depend on your total income picture for 2015.

Further, the IRA custodian SHOULD withhold a set amount from the distribution for taxes. Generally, it is 20% of the distribution, or $10,500.

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The rub is I don't have any cash with the custodans of this IRA Account just the
coins. I thought that I could defer the custodian withholding the tax and make the
tax payment on my est. taxes. When I withdraw from my IRA with Scottrade, they ask if I want them to take the taxes out. What do you think I will have to do with this Gold and Silver IRA Account tax wise?

I don't want to give this G/S account another chance to rip me up as it has been
a bad move on my part from the beginning.

talk to the custodian of the account and ask what your options are. Typically the custodian will withhold 20% of the distribution for tax purposes - in the case of a gold IRA I would assume that means they sell off 20% and forward the proceeds to the IRS on your behalf. However, if they have the option of NOT withholding taxes, then I would think they would ship you the coins and then it's up to you to pay estimated taxes. But again - given them a call and see what your options are.

Just got off the phone with the custodian and it so far looks like I can get all of the gold
I purchased sent to me and I pay est. tax. That is the way it should be, I purchased it, it is mine and for me to have to let them sell part of it to pay for est. taxes would be a real rip-off. They got a big chunk when I bought it, would not be right for them to bite me again just to get it delivered. Thanks ebaines.

Glad it will work out for you. Just one other point - if you're not familiar with quarterly estimated tax payments you should keep in mind that this $40K income is taxed at whatever rate applies to your income level, which may not be 20%. If your other income sources are pretty much the same from 2014 into 2015 then this distribution is effectively taxed at your marginal tax rate, or one that is higher if this pushes you into a higher tax bracket. Also be sure to review how it may affect your state income taxes - depending on your state you may have to file an estimated payment with the state as well.

Yes, I will need to file est. tax for state also. The only thing that has really changed is I have to file as single for the first time due to wife's passing in 2014. I hope the lady I spoke with was right, that I can pay the taxes myself, will see when the dust settles.