Like many clubs, we are planning to closedown this year.
Just members getting older. We are with Schwab with
checking privileges. Obviously, it is simpler to sell
everything and distribute the cash. But some members have
large capital gains and would prefer stock. I have been the
long time treasurer and have been reading the conversations
on here for ideas.

I have some specific questions.
Must all distributions be the same for each member, that is
all cash or all stock?
Is Schwab allowing stock transfers? Hard or easy to work
with them?
Has anyone considered the effect of these large capital
gains on the IRMAA adjustment (Medicare)? Any work around
ideas.
If our club distributes shares, I am considering using a CPA
to do things properly. Or is that overkill and I should be
able to do myself?
What about taking some capital gains this year and doing the
final shutdown next year? Any advantages?
Thanks for your thoughts. I am sure I will be posting again
soon.
Anne Weeks

Hi Anne,
If you distribute shares of stock, each member controls when they take the capital gains and can work with their individual tax advisor to consider what tax years are best for them individually.
 
We found Schwab impossible to work with when trying to transfer stock to members and had to switch our club assets to Fidelity to do so. It was worth it!
 
Bivio withdrawal program was very helpful and we were able to give each member details on their individual cost basis for each of the holdings transferred to them. I do believe that you can transfer stock to some people and give cash to others but we chose to give everyone stock ( primarily) with a little cash and let everyone liquidate their assets on their own timeline.
 
It went very smoothly for us. Good luck to you!
 
 
 
Sent from my iPhonery
 
> On Jun 4, 2025, at 10:42 AM, ANNE WEEKS via bivio.com <user*6029900001@bivio.com> wrote:
>
> Like many clubs, we are planning to closedown this year.
> Just members getting older. We are with Schwab with
> checking privileges. Obviously, it is simpler to sell
> everything and distribute the cash. But some members have
> large capital gains and would prefer stock. I have been the
> long time treasurer and have been reading the conversations
> on here for ideas.
>
> I have some specific questions.
> Must all distributions be the same for each member, that is
> all cash or all stock?
> Is Schwab allowing stock transfers? Hard or easy to work
> with them?
> Has anyone considered the effect of these large capital
> gains on the IRMAA adjustment (Medicare)? Any work around
> ideas.
> If our club distributes shares, I am considering using a CPA
> to do things properly. Or is that overkill and I should be
> able to do myself?
> What about taking some capital gains this year and doing the
> final shutdown next year? Any advantages?
> Thanks for your thoughts. I am sure I will be posting again
> soon.
> Anne Weeks

Thank you,

Anne

> On Jun 4, 2025, at 1:49 PM, Tracy, Molly M via bivio.com <user*40992200001@bivio.com> wrote:
>
> Hi Anne,
> If you distribute shares of stock, each member controls when they take the capital gains and can work with their individual tax advisor to consider what tax years are best for them individually.
>
> We found Schwab impossible to work with when trying to transfer stock to members and had to switch our club assets to Fidelity to do so. It was worth it!
>
> Bivio withdrawal program was very helpful and we were able to give each member details on their individual cost basis for each of the holdings transferred to them. I do believe that you can transfer stock to some people and give cash to others but we chose to give everyone stock ( primarily) with a little cash and let everyone liquidate their assets on their own timeline.
>
> It went very smoothly for us. Good luck to you!
>
>
>
> Sent from my iPhonery
>
>> On Jun 4, 2025, at 10:42 AM, ANNE WEEKS via bivio.com <user*6029900001@bivio.com> wrote:
>>
>> Like many clubs, we are planning to closedown this year.
>> Just members getting older. We are with Schwab with
>> checking privileges. Obviously, it is simpler to sell
>> everything and distribute the cash. But some members have
>> large capital gains and would prefer stock. I have been the
>> long time treasurer and have been reading the conversations
>> on here for ideas.
>>
>> I have some specific questions.
>> Must all distributions be the same for each member, that is
>> all cash or all stock?
>> Is Schwab allowing stock transfers? Hard or easy to work
>> with them?
>> Has anyone considered the effect of these large capital
>> gains on the IRMAA adjustment (Medicare)? Any work around
>> ideas.
>> If our club distributes shares, I am considering using a CPA
>> to do things properly. Or is that overkill and I should be
>> able to do myself?
>> What about taking some capital gains this year and doing the
>> final shutdown next year? Any advantages?
>> Thanks for your thoughts. I am sure I will be posting again
>> soon.
>> Anne Weeks

I have some specific questions.
Must all distributions be the same for each member, that is
all cash or all stock?

Answer: Each member can receive stock and cash in any ratio
that makes sense to the partnership. Transferring shares
will never come down to the penny so there will be some cash
to each member. If a particular member wants a bigger share
in cash, you can do it. As someone else recommended, sell
all losers first and add the cash proceeds to your existing
cash. That will determine the amount of cash you have
available.

Is Schwab allowing stock transfers? Hard or easy to work
with them?

Answer: As a 20-year+ Schwab customer, we had no trouble
transferring stock to the estate of a charter member who
passed away late last year. I submitted the transfer forms,
and the process was complete in a couple of days.

 Message traffic on this site suggests partnerships that
 transferred accounts from TD Ameritrade are having some
 difficulty. Your mileage may differ.

Has anyone considered the effect of these large capital
gains on the IRMAA adjustment (Medicare)? Any work around
ideas.

The income will impact IRMMA. Not aware of any work around,
other than the provision that allows a request to
re-calculate when there is a change in circumstances.
Explained in the Medicare letter telling you what your
premium will be.

If our club distributes shares, I am considering using a CPA
to do things properly. Or is that overkill and I should be
able to do myself?

Answer: You should be able to do it yourself. The bivio
software will walk you through it. The transfer forms from
Schwab are straight forward.

What about taking some capital gains this year and doing the
final shutdown next year? Any advantages?

Answer: Spreading the closure over two years changes the
dynamics. In the first year, the distributions would be cash
only, and every member will have a current year income tax
impact. The gains triggered by the sale of shares to fund
the cash distribution would impact all members. The final
distribution in the second year, would have the same impact
on members as doing it in one year, except the numbers would
be smaller.

Transferring shares allows each member to choose in what
year and in what amount they want to realize capital gain of
the shares they receive. In theory, they could hold the
shares until death and never pay income tax. The impact on
Estate tax awaits the bills in Congress.

Thanks for your thoughts. You're Welcome:

Jack Ranby, Treasurer, Grants Partners Investment Club

I am sure I will be posting again
soon.
Anne Weeks