UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Next Thread
Author: Mobyduck0404 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 27818  
Subject: DRP's into Roth IRA? Date: 3/11/2006 10:34 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I have about 6 DRP's and have had them for about 5 years. Since I'm planning to hold them long term, I'm wondering if there is a way to put them all into a Roth IRA. My thoughts are that it would simplify taxes years from now. Is this possible? Does it make sense? Appreciate any comments -

Mobyduck
Print the post Back To Top
Author: Wolfshead56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26675 of 27818
Subject: Re: DRP's into Roth IRA? Date: 3/11/2006 1:21 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Most Drips do not offer an IRA option. Of those that do all charge an annual fee of between $25-50. So even if all 6 DRIPS offered the option it would still run you from $150 to $300 a year in fees which is a bit steep. Sorry Dripping in IRAs is not really a great option.

herb

Print the post Back To Top
Author: wynternewbold One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26683 of 27818
Subject: Re: DRP's into Roth IRA? Date: 3/14/2006 4:41 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I don't think you can just put assets into a ROTH IRA like that. I believe you would have to sell them and then buy them back under an established (or brand new) ROTH account. You can DRIP stocks at a discount brokerage and if the account that you have bought the DRIPS in is a ROTH that would also work. Just a couple of ideas.

Print the post Back To Top
Author: Wolfshead56 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26684 of 27818
Subject: Re: DRP's into Roth IRA? Date: 3/14/2006 4:46 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
I don't think you can just put assets into a ROTH IRA like that

You can't put any asset but cash into an IRA but you can DRIP into an IRA. Some companies do offer the IRA option as part of their Drip but the problem is, for the fees you would pay it is better to just set up an IRA with a brokerage.

herb

Print the post Back To Top
Author: Slapped Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26685 of 27818
Subject: Re: DRP's into Roth IRA? Date: 3/19/2006 12:45 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
This past week I called Ameritrade and asked if I could start a DRIP with a stock I already own in my Roth IRA. The guy had to check with his manager but said it was ok and went ahead and signed me up. I asked about fees and he said they did it automatically, no fees.
I'll pay attention to see if I do get charged.
I could not set it up on another stock I own in this account because that company would not allow Ameritrade to do this.
You might have to open an account with a broker, put in cash, then set yourself back up with your DRIP's. Make sure they can set you up with the stocks you have/want.

Print the post Back To Top
Author: benmaller CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26687 of 27818
Subject: Re: DRP's into Roth IRA? Date: 3/20/2006 1:13 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Just a reminder that an Ameritrade DRIP, or a DRIP at any other brokerage, is going to be synthetic drip. You may get fee free dividend reinvestment but you will generally not get an OCP option. You will have to buy additional shares in whole numbers and pay standard commissions. So there are some trade-offs to consider with this approach

Ben

Print the post Back To Top
Author: TurkeyBreath Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26688 of 27818
Subject: Re: DRP's into Roth IRA? Date: 3/20/2006 9:42 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
...OCP option...

Please explain.

Thanks,

TB



Print the post Back To Top
Author: WyneFool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26689 of 27818
Subject: Re: DRP's into Roth IRA? Date: 3/20/2006 12:47 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
...OCP option...

Please explain.


Optional Cash Payment. Part of the beauty of DRiP accounts is the ability to make OCP's (say I only have $100 per month to invest) without outrageous broker fees. The other part is the actual Dividend reinvestment. When I started DRiPping I only had $25 per month that I could afford to invest (back when $25 could fill a gas tank 2 1/2 times). It allowed me to save with immediate quarterly dividends (DRiP) rather than save $300 and let a broker take a chunk (almost $50 to trade).

Hope this helps.

WyneFool

Print the post Back To Top
Author: TurkeyBreath Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 26690 of 27818
Subject: Re: DRP's into Roth IRA? Date: 3/20/2006 8:24 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
...OCP option...

Optional Cash Payment...

Hope this helps.

WyneFool


Thanks,

TB


Print the post Back To Top
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev Thread | Next Thread
Advertisement