Could you please provide the Schwab form number. You are the first investment club that has been able to perform a stock transfer to a member that has reported through club cafe. We have been told that Schwab will not transfer stock from an investment Club to a member.
Thank you.
Bob Ford
From my Kindle
On June 4, 2025, at 12:38 PM, "Michael Wainer via bivio.com" <user*35350100001@bivio.com> wrote:
Hello Anne:
Our club, The Bear Trap Co., switched to Schwab when TD Ameritrade ended a few years ago. We have given stock transfers to a member twice in the past year. Before that our experience was to sell stock(s) to give to a member withdrawing a portion of their
club shares or a complete withdrawal. No issues with Schwab. We do have to fill out a form and the two co-signers in our club (Treasurer and Assistant Treasurer) have to sign. We are lucky to have a Schwab office nearby where we drop off the form.
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
John Rice on
Schwab doesn't allow shares to be distributed to members. The only alternative for transferring stock to members and avoiding the IRMAA adjustment will be to switch your broker to another one that allows stock transfers to members. After the transfer to the new broker you can disband and distribute the stocks and cash. The individual members now have the choice to sell the amount of stocks each year to avoid the IRMAA and higher tax on capital gains.
Could you please provide the Schwab form number. You are the first investment club that has been able to perform a stock transfer to a member that has reported through club cafe. We have been told that Schwab will not transfer stock from an investment Club to a member.
Our club, The Bear Trap Co., switched to Schwab when TD Ameritrade ended a few years ago. We have given stock transfers to a member twice in the past year. Before that our experience was to sell stock(s) to give to a member withdrawing a portion of their
club shares or a complete withdrawal. No issues with Schwab. We do have to fill out a form and the two co-signers in our club (Treasurer and Assistant Treasurer) have to sign. We are lucky to have a Schwab office nearby where we drop off the form.
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
On Thursday, June 5, 2025, 4:30 PM, John Rice via bivio.com <user*24380400001@bivio.com> wrote:
Schwab doesn't allow shares to be distributed to members. The only alternative for transferring stock to members and avoiding the IRMAA adjustment will be to switch your broker to another one that allows stock transfers to members. After the transfer to the new broker you can disband and distribute the stocks and cash. The individual members now have the choice to sell the amount of stocks each year to avoid the IRMAA and higher tax on capital gains.
Could you please provide the Schwab form number. You are the first investment club that has been able to perform a stock transfer to a member that has reported through club cafe. We have been told that Schwab will not transfer stock from an investment Club to a member.
Our club, The Bear Trap Co., switched to Schwab when TD Ameritrade ended a few years ago. We have given stock transfers to a member twice in the past year. Before that our experience was to sell stock(s) to give to a member withdrawing a portion of their
club shares or a complete withdrawal. No issues with Schwab. We do have to fill out a form and the two co-signers in our club (Treasurer and Assistant Treasurer) have to sign. We are lucky to have a Schwab office nearby where we drop off the form.
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
Peter Dunkelberger on
One word of caution--my understanding, and please correct me if I am wrong, is that the taxation on the capital gains on appreciated stock transferred to fully liquidate a partner's share in the partnership are merely deferred for the partnership. When the partnership is liquidated those gains are paid by the partners who turn off the lights. So if you are closing the club, does it make sense to transfer appreciated stock if those same remaining club members are going to pay the gains on those transactions? Or to put it another way, if the partnership is liquidated, and remaining members' equity shares are paid with appreciated stock, those withdrawing members are going to pay the capital gains taxes on the appreciated stock anyway. At least if my understanding of the tax rules is correct. So just sell the stocks and pay off the remaining members in cash.
Schwab doesn't allow shares to be distributed to members. The only alternative for transferring stock to members and avoiding the IRMAA adjustment will be to switch your broker to another one that allows stock transfers to members. After the transfer to the new broker you can disband and distribute the stocks and cash. The individual members now have the choice to sell the amount of stocks each year to avoid the IRMAA and higher tax on capital gains.
Could you please provide the Schwab form number. You are the first investment club that has been able to perform a stock transfer to a member that has reported through club cafe. We have been told that Schwab will not transfer stock from an investment Club to a member.
Our club, The Bear Trap Co., switched to Schwab when TD Ameritrade ended a few years ago. We have given stock transfers to a member twice in the past year. Before that our experience was to sell stock(s) to give to a member withdrawing a portion of their
club shares or a complete withdrawal. No issues with Schwab. We do have to fill out a form and the two co-signers in our club (Treasurer and Assistant Treasurer) have to sign. We are lucky to have a Schwab office nearby where we drop off the form.
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
Robert Shaw on
I believe what I am about to say is correct.
If you are ending the club it likely will be most beneficial to transfer appreciated stock to those who want it.
It may be more difficult if more than one member wants the same company.
If the stock is held at a loss the club should sell it to give the tax loss benefit to all members.
The members receiving stock in lieu of cash will not pay taxes on the transferred stock until they sell it.
The withdrawal documents will provide them with their tax basis so these documents should be retained.
And if they hold the transferred stock until death they may escape the taxes altogether.
The club sales will be taxable to the members in the year of sale.
That will be reflected on their K-1.
One final point: Do not do anything until you are certain all the withdrawal paperwork is completed and correct.
Fixing mistakes after the stock has been transferred can be difficult or even impossible.
Bob Shaw
President
Classic Strategy Investment club
On Jun 6, 2025, at 3:01 PM, Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:
One word of caution--my understanding, and please correct me if I am wrong, is that the taxation on the capital gains on appreciated stock transferred to fully liquidate a partner's share in the partnership are merely deferred for the partnership. When the partnership is liquidated those gains are paid by the partners who turn off the lights. So if you are closing the club, does it make sense to transfer appreciated stock if those same remaining club members are going to pay the gains on those transactions? Or to put it another way, if the partnership is liquidated, and remaining members' equity shares are paid with appreciated stock, those withdrawing members are going to pay the capital gains taxes on the appreciated stock anyway. At least if my understanding of the tax rules is correct. So just sell the stocks and pay off the remaining members in cash.
Schwab doesn't allow shares to be distributed to members. The only alternative for transferring stock to members and avoiding the IRMAA adjustment will be to switch your broker to another one that allows stock transfers to members. After the transfer to the new broker you can disband and distribute the stocks and cash. The individual members now have the choice to sell the amount of stocks each year to avoid the IRMAA and higher tax on capital gains.
Could you please provide the Schwab form number. You are the first investment club that has been able to perform a stock transfer to a member that has reported through club cafe. We have been told that Schwab will not transfer stock from an investment Club to a member.
Our club, The Bear Trap Co., switched to Schwab when TD Ameritrade ended a few years ago. We have given stock transfers to a member twice in the past year. Before that our experience was to sell stock(s) to give to a member withdrawing a portion of their
club shares or a complete withdrawal. No issues with Schwab. We do have to fill out a form and the two co-signers in our club (Treasurer and Assistant Treasurer) have to sign. We are lucky to have a Schwab office nearby where we drop off the form.
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
ira smilovitz on
Peter,
You are correct that the capital gains on appreciated stock transferred to a withdrawing partner is deferred for the remaining partners until they withdraw. However, if the "last ones out" take stock as part of their withdrawal, the accumulated deferred capital gains are distributed among the adjusted cost bases of the shares received. That means, the gains are further deferred until each member sells the shares they were given as part of their withdrawal.
The whole advantage of the withdrawal with appreciated stock is that each member can choose his or her own timing for recognizing the gains based on when they sell shares. If shares are sold by the club before the withdrawals, each member will be forced to recognized their apportioned share of the gains in the withdrawal year.
One word of caution--my understanding, and please correct me if I am wrong, is that the taxation on the capital gains on appreciated stock transferred to fully liquidate a partner's share in the partnership are merely deferred for the partnership. When the partnership is liquidated those gains are paid by the partners who turn off the lights. So if you are closing the club, does it make sense to transfer appreciated stock if those same remaining club members are going to pay the gains on those transactions? Or to put it another way, if the partnership is liquidated, and remaining members' equity shares are paid with appreciated stock, those withdrawing members are going to pay the capital gains taxes on the appreciated stock anyway. At least if my understanding of the tax rules is correct. So just sell the stocks and pay off the remaining members in cash.
Schwab doesn't allow shares to be distributed to members. The only alternative for transferring stock to members and avoiding the IRMAA adjustment will be to switch your broker to another one that allows stock transfers to members. After the transfer to the new broker you can disband and distribute the stocks and cash. The individual members now have the choice to sell the amount of stocks each year to avoid the IRMAA and higher tax on capital gains.
Could you please provide the Schwab form number. You are the first investment club that has been able to perform a stock transfer to a member that has reported through club cafe. We have been told that Schwab will not transfer stock from an investment Club to a member.
Our club, The Bear Trap Co., switched to Schwab when TD Ameritrade ended a few years ago. We have given stock transfers to a member twice in the past year. Before that our experience was to sell stock(s) to give to a member withdrawing a portion of their
club shares or a complete withdrawal. No issues with Schwab. We do have to fill out a form and the two co-signers in our club (Treasurer and Assistant Treasurer) have to sign. We are lucky to have a Schwab office nearby where we drop off the form.
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