UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76112  
Subject: Re: F4 and a Roth IRA Date: 1/3/2000 1:45 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, Zazjane, and welcome. You wrote:

<<1) By the time I get a discount brokerage account open (I just discovered the Fool site in mid-Dec) and the IRA rolling, it will be Feb or so. If I buy the current F4 stocks in Feb, then sell them in Dec and buy the next F4 picks, am I correct in understanding that there's no tax ramification (because the transactions are done within a Roth IRA)?>>

No, you would sell on your anniversary date next February. The FF is based on an annual trading date regardless of which month you begin. For details, read more in the Dow area at http://www.fool.com/DDow/FoolishFourExplained.htm. You are correct that doing so within an IRA has no income tax ramifications.

<<2) I reinvest the dividends - right?>>

If your broker allows reinestment without charge, you can. Otherwise, the dividends just accumulate in your sweep account earning interest until your next anniversary date.

<<3)Why are commissions deducted from the $2K I'm allowed to put in the IRA? (Why am I not allowed to save the entire $2K and pay the commissions out of taxable income?) >>

Very simply because that's what the law demands. If you pay for trading costs out of pocket, then those costs get counted as part of your annual contribution. That, in turn, would cause you to overcontribute, which is a whole new set of problems.

Regards..Pixy
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

Berkshire Beyond Buffett Event
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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