The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: ESPP to IRA||Date: 1/27/1999 3:10 PM|
|Author: lonwolf||Number: 9070 of 125866|
I have been participating in my company's Employee Stock Purchase Plan for the last year. Foolishly, I have been using it as a forced savings plan. The stock has been doing well, and I would like to use it to open a Roth IRA for myself or my wife. (I don't qualify for a traditional because I also participate in a 401k.) Before I do this, I just have a couple of questions.
1. Can you open up an IRA with stock?
2. If you can, how to you calculate their value for the $2000/year/person limit?
3. Because the stock was bought through an ESPP, how do you take the special tax circumstances into account?
4. What happens if the stock exceeds $2000 before it is deposited into the Account. (It is very close to that right now.)
I don't want to sell the stock and put the proceeds in an IRA, because I would have to pay short term capital gains and income tax on the discount.
Thank you for your help in this matter. I read the Investment Tax guide and the FAQ, but I didn't find an answer.
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