UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: jwaidelich Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: BASIC IRA QUESTION Date: 1/10/2000 1:59 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
=================================================
My question is if you invest stocks how does the commission come into play. For instance if i buy stock XYZ with a $20 commission and then sell it the same year with another $20 commission does the $40 in commissions come out of the $2000 limit or how does this work????
==================================================


Good question. Unfortunately, the $40 comes out of your IRA, effectively reducing your maximum contribution to $1960. As far as I know, there is no way to get around this (such as paying the commission from another account, writing a separate check for the commission, etc.) It might depend on the company that you are working with, however.

Here are a few ideas:
1. Talk to your broker, and see if he/she has any ideas about how to avoid paying the fee out of your IRA.
2. If you plan on trading often in your IRA, choose a broker with low commissions.
3. If you get any bonuses from you broker in the form of commission-free or cheeper trades, save them to use with your IRA.

I'd love to hear anyone else's ideas on how to get around this pitfall.

- JW

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Reestablishing the Middle Class
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement