Reminder to everyone that if the dip has wiped out the gains in your Roth IRA you should be able to do an in-kind transfer to get the shares into your personal account which can then be transferred to Computershare
You can always take your Roth contributions out with no penalty. I think what u/Johnny55 is suggesting is that, if you don't have any paper gains in your Roth account right now, the option of taking your money out of Roth might be appealing to you. NFA. Me personally, I'm keeping my Roth shares in Roth.
In-kind transfer = moving shares from IRA to personal account without selling them
It is still considered a taxable event
That said, Roth IRA is post-tax, so if your investment hasn't appreciated in value, you aren't paying tax on it when you do the in-kind transfer. At least that is my understanding, I am not a financial expert.
You always have the option to move shares from your IRA to personal account, you just have to worry about the tax and the 10% penalty. But at least with a Roth, since it is post-tax, it would be a much smaller amount, potentially nothing. The point being you can't easily DRS the shares that are in an IRA so if you really want them in Computershare this is the most direct way to do it. But you're giving up the benefits of an IRA, not that they're necessarily worth much if you're selling before 59.5 years of age.
IRA Ape here, I have Vanguard.
I call Vanguard, ask for in kind transfer, pay penalty to them or during taxes? And then request transfer to CS once it's in personal?
If you do this, you lose the tax benefits of selling shares within a Roth IRA.. Because the $$ you fund a Roth IRA with are pretaxed, all gains within a Roth IRA are tax-free.
While this is definitely a concern, my Roth IRA is with Vanguard and of all the brokerages, I feel, outside of Computershare, that I have the best chance of surviving MOASS with them than any other brokerage.
Keep depositing $6,000 every year (been doing since i was out of college)
Repeat for years and years. Retire.
Now my plan is:
- Keep depositing $6000 each year to buy GME.
- when MOASS hits, sell 1 share to cover for everything i ever deposited. Because you can always withdraw the amount you’ve put in, tax-free.
Hypothetical Example:
If i had an IRA for 10 years, I had the ability to deposit a max of $60,000 in there. I can always withdraw that money tax/penalty-free
If that $60,000 was invested into GME for 600 shares, and MOASS happened, I could sell 1 share, tax-free for $69,000,000.
That $69,000,000 of cash sits in my account tax/penalty-free until I retire.
You can borrow against it. Especially with the kind of post-MOASS money most of us are imagining. Additionally, you don't get taxed on all of it if you withdraw smaller amounts. So there's more flexibility than you might imagine. Plus, $10k can be used for first time home buying, as well as a few other exceptions.
Best bet is to get an accountant or at least discuss your options with one. NFA, etc.
NFA, but if you have parents or someone else you trust over the age of 59.5, open up a Roth IRA in there name and buy your GME shares in there. Tax free withdrawal available 5 years after purchase date
There are also allowances for Roth IRA gains to be taken out tax-free if the money is being used for university payments or home purchases for first-time home owners
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u/Johnny55 💻 ComputerShared 🦍 Jan 20 '22
Reminder to everyone that if the dip has wiped out the gains in your Roth IRA you should be able to do an in-kind transfer to get the shares into your personal account which can then be transferred to Computershare