When you are eligible or required to take distributions, you can opt to receive either the entire sum or periodic distributions for the Rest of your life. You can also take in-kind distributions. The taxable amount, if applicable, is based on the fair market value of the asset at the time of distribution. For example, Babette’s and Peter’s Roth IRAs each owned a 50 percent share of a flat in London. Because they were prohibited to use it, they leased it. The rent was paid to their IRAs, which also paid for all expenses. But when they turned sixty-five, they each took their share of the flat as a distribution without tax consequences. Now they are enjoying living in it themselves.

If your IRA owns assets offshore, determining the fair market value is not quite as straightforward. If you have real property, you will need to get an acceptable appraisal and have the amount converted to U.S. dollars. In the case of cash, the value of the currency being distributed must be established on the date of distribution in U.S. dollars. For required minimum distributions, the fair market value of the account is determined as of December 31 of the previous year. This information needs to be reported to the IRS, regardless of whether the IRA is a traditional or Roth. When distributing an offshore asset, timing is important because of fluctuating exchange rates, so select the day of distribution carefully.