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Re: Regulator06 post# 138989

Wednesday, 03/27/2019 1:10:28 PM

Wednesday, March 27, 2019 1:10:28 PM

Post# of 191991
TIP: If you have shares in a pre-tax retirement account, like a traditional IRA, and you have a Roth IRA, when stock prices dip you can transfer those assets from your T-IRA to your R-IRA, and then pay income tax in the following tax year based on the value of the stock at the time of transfer. If the stock goes back up, now sitting in your Roth, the recovered value and gains are tax free.

The downside is you have to pay those taxes out of pocket, even if the stock drops further, so there is risk. Also I believe the amount of the valuation of the stock at the time of transfer, reduces the amount of cash you can contribute to your Roth, for the year you select(previous or current), before hitting the yearly maximum.

Might not be right for you, but good to know.
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