11-25-2014, 08:32 AM
And what to do if these same shares are held in an IRA.?
Consider doing a Roth conversion, pay the income tax on the lower account balance now, then all future upside is totally tax free, no RMDs, and tax free to heirs.
Important to have cash on hand liquidity to pay the taxes
Spectacular strategy if you think the stock will head north
Disasterous strategy if stock goes permanently south
As always, consult your tax advisor
Bobby
Consider doing a Roth conversion, pay the income tax on the lower account balance now, then all future upside is totally tax free, no RMDs, and tax free to heirs.
Important to have cash on hand liquidity to pay the taxes
Spectacular strategy if you think the stock will head north
Disasterous strategy if stock goes permanently south
As always, consult your tax advisor
Bobby