whitestick
Recycles dryer sheets
- Joined
- Apr 5, 2005
- Messages
- 415
Confused a bit on what I can do. Here's the poser.
If I have shares of stock abc in an IRA, I understand that assuming all accounts are at same brokerage, I could transfer those shares to a Roth IRA without liquidating them first. Assuming that you would use the cost basis of those shares, rather then the current market price, that seems a way of being able to transfer in and not have to recognize the increase value for tax purposes untill withdrawing, at which time no tax would be due coming from a Roth. (of course meeting all timeframes for account establishment, etc).
IF that is true, could the same thing apply via a taxable account, meaning, since all shares at a brokerage are essentially the same, could you transfer out the shares in an IRA that may have a high cost basis, and transfer in an equal number of shares to the Roth that may have a low cost basis, due to having held them for a very long time. Thus being able to recognize the large gain under the Roth, and the small gain under a taxable account.
If I have shares of stock abc in an IRA, I understand that assuming all accounts are at same brokerage, I could transfer those shares to a Roth IRA without liquidating them first. Assuming that you would use the cost basis of those shares, rather then the current market price, that seems a way of being able to transfer in and not have to recognize the increase value for tax purposes untill withdrawing, at which time no tax would be due coming from a Roth. (of course meeting all timeframes for account establishment, etc).
IF that is true, could the same thing apply via a taxable account, meaning, since all shares at a brokerage are essentially the same, could you transfer out the shares in an IRA that may have a high cost basis, and transfer in an equal number of shares to the Roth that may have a low cost basis, due to having held them for a very long time. Thus being able to recognize the large gain under the Roth, and the small gain under a taxable account.