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#5
11-09-2004, 02:12 PM
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 Re: Swap cash and securities in IRA? "Eric Edwards" <ese002[at]news9.exile.org> wrote in message news:slrncovsvr.23g.ese002[at]spica.exile.org... - quote - > Fortunately, this is neither. One way to look at it is as a purchase.
As Tad pointed out, this is a no no.> I (the non-retirement account) sell the securities to myself (the IRA). > However, there are obvious ways in which that sort of transaction could > be abused. I assume that, if it can be done, it won't be that simple. Brent D. Gardner, ChFC Chartered Financial Consultant http://members.cox.net/brentdgardner1378/ Sis vis pacem para bellum! "Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go to heaven if you die dumb. Become better informed. Learn from other's mistakes. You could not live long enough to make them all yourself." - Hyman George Rickover (1900-86), Admiral, US Navy, advocated development of nuclear subs & ships The Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC), designations owned and exclusively offered by The American College, signify the highest standards of academic study and professional excellence in the financial services industry. |
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#4
11-09-2004, 12:00 AM
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| Re: Swap cash and securities in IRA? Eric Edwards wrote: - quote - > Fortunately, this is neither. One way to look at it is as a purchase.
Just to shut down this whole idea...selling property to your IRA is one> I (the non-retirement account) sell the securities to myself (the IRA). > However, there are obvious ways in which that sort of transaction could > be abused. I assume that, if it can be done, it won't be that simple. of the "prohibited transactions" in the tax code. No way around this one, it disqualifies your whole IRA. Penny wise = pound foolish if you try to save on commissions. On the bright side, this might be a good opportunity to revisit your overall asset allocation....sounds like it should be more aggressive within the IRA, and much less aggressive outside of it. And the commissions/spreads shouldn't be much money really, as long as they're done through a discount broker. -Tad |
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#3
11-08-2004, 11:13 PM
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| Re: Swap cash and securities in IRA? On Sun, 7 Nov 2004 15:49:36 CST, Elizabeth Richardson <erichktn[at]worldnet.att.net> wrote: - quote - > "Eric Edwards" <ese002[at]news9.exile.org> wrote in message
It helps in that eliminates the fees and losses involved with a market> > The IRA in question is a Roth but I may soon also have a rollover IRA > > in a similar state. > > I believe you can take a distribution - at any time without penalty - the > amount you have contributed to a Roth, though not its earnings. Would doing > so solve your problem? sale. However, it has a down side in that it reduces the value of the Roth with no obvious way to correct at a later date. I am assuming contribution at legal maximum during good times. Not optimal, but worth considering. Thanks. -- Photos and travelogues from Africa and Southeast Asia: http://www.exile.org |
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#2
11-08-2004, 11:13 PM
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| Re: Swap cash and securities in IRA? On Sun, 7 Nov 2004 16:54:31 CST, Brent D. Gardner, ChFC <bgardner20[at]cox.net> wrote: - quote - > "Eric Edwards" <ese002[at]news9.exile.org> wrote in message
Fortunately, this is neither. One way to look at it is as a purchase.> news:slrncosiue.4uk.ese002[at]spica.exile.org... > > I have an IRA that is now mostly cash. In a non-retirement account, > > I have stocks and mutual funds. I'm in a bit of a financial bind right > > now. I need cash on the outside, yet I would rather not sell my > > securities. Ideally, I would achieve a dollar for dollar swap between > > the cash in the IRA and the securities on the outside. Is there a > > reasonable way to pull this off? > > > The brute force obvious thing to do is simply to sell the securities on > > the open market and buy again in the IRA. Unfortunately, this means I > > loose money on the spread and commissions and potentially incur fees from > > the mutual funds. There is also a short term tax liability but that is > > not likely to be a problem this year. > > > The IRA in question is a Roth but I may soon also have a rollover IRA > > in a similar state. > Contributions to and distributions from an IRA are made in cash. I (the non-retirement account) sell the securities to myself (the IRA). However, there are obvious ways in which that sort of transaction could be abused. I assume that, if it can be done, it won't be that simple. -- Photos and travelogues from Africa and Southeast Asia: http://www.exile.org |
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#1
11-07-2004, 09:54 PM
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| Re: Swap cash and securities in IRA? "Eric Edwards" <ese002[at]news9.exile.org> wrote in message news:slrncosiue.4uk.ese002[at]spica.exile.org... - quote - > I have an IRA that is now mostly cash. In a non-retirement account,
Contributions to and distributions from an IRA are made in cash.> I have stocks and mutual funds. I'm in a bit of a financial bind right > now. I need cash on the outside, yet I would rather not sell my > securities. Ideally, I would achieve a dollar for dollar swap between > the cash in the IRA and the securities on the outside. Is there a > reasonable way to pull this off? > The brute force obvious thing to do is simply to sell the securities on > the open market and buy again in the IRA. Unfortunately, this means I > loose money on the spread and commissions and potentially incur fees from > the mutual funds. There is also a short term tax liability but that is > not likely to be a problem this year. > The IRA in question is a Roth but I may soon also have a rollover IRA > in a similar state. Brent D. Gardner, ChFC Chartered Financial Consultant http://members.cox.net/brentdgardner1378/ Sis vis pacem para bellum! "Be ever questioning. Ignorance is not bliss. It is oblivion. You don't go to heaven if you die dumb. Become better informed. Learn from other's mistakes. You could not live long enough to make them all yourself." - Hyman George Rickover (1900-86), Admiral, US Navy, advocated development of nuclear subs & ships The Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC), designations owned and exclusively offered by The American College, signify the highest standards of academic study and professional excellence in the financial services industry. |
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11-07-2004, 08:49 PM
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| Re: Swap cash and securities in IRA? "Eric Edwards" <ese002[at]news9.exile.org> wrote in message - quote - > The IRA in question is a Roth but I may soon also have a rollover IRA
I believe you can take a distribution - at any time without penalty - the> in a similar state. amount you have contributed to a Roth, though not its earnings. Would doing so solve your problem? Elizabeth Richardson |
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#-1
11-07-2004, 06:23 PM
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| Swap cash and securities in IRA? I have an IRA that is now mostly cash. In a non-retirement account, I have stocks and mutual funds. I'm in a bit of a financial bind right now. I need cash on the outside, yet I would rather not sell my securities. Ideally, I would achieve a dollar for dollar swap between the cash in the IRA and the securities on the outside. Is there a reasonable way to pull this off? The brute force obvious thing to do is simply to sell the securities on the open market and buy again in the IRA. Unfortunately, this means I loose money on the spread and commissions and potentially incur fees from the mutual funds. There is also a short term tax liability but that is not likely to be a problem this year. The IRA in question is a Roth but I may soon also have a rollover IRA in a similar state. -- Photos and travelogues from Africa and Southeast Asia: http://www.exile.org |
| Tags |
| cash, ira, securities, swap |
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