Bio Path Holdings Inc (BPTH)

[SJSTOCKSHARK]

BP, The basic rules are as follows:

You have to pay the income taxes on the shares you transfer into the Roth during the same year. You are taxed at ordinary income rates so you transfer when the price is low. You can only transfer in and out of the Roth once during a taxable year. You can reverse the transfer after waiting 30 days. You must wait at least 5 years after the transfer into the Roth to start withdrawals.

After the transfer into the Roth all appreciation of the stock is TAX FREE. If you transfer 50,000 shares into the Roth you would add $50,000 (at stock price of a buck) to your income this year. Your taxes on this income would be a maximum of $25k. If the stock goes to $10 you could save hundreds of thousands in taxes depending on your income tax rate.

GP any additions?

Ask your tax preparer for a better explanation as I am not an accountant.