Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
<< I've since decided to open an account with Waterhouse, and go it alone (well, not really, since a Fool is never alone). My trouble is this. TDWatehouse says that American Express funds (IDS) are proprietary, and that we have to liquidate our funds with them to reinvest with Waterhouse. 1st dumb question, am I taxed for this? Waterhouse is saying no, but I find that very hard to believe. I'm thinking that since it has been less than a year, I will be taxed at my personal income tax rate. >>

You will be taxed at your ordinary income rate for the gain on the sale. For more information on how to calculate your gain, see the FAQ.

<< Second question, we have two ROTH's as well, which are invested in IDS funds too. When I liquidate the funds, can I keep the Roth's open and transfer them to Waterhouse? Or, do I have to close them and start over. Obviously, I would like to keep them, and not have to start over. >>

What you want to do is a trustee-to-trustee transfer of your IRAs. IDS will liquidate the funds and transfer the cash to your new trustee. Waterhouse should have all the forms you need to accomplish this.

Phil Marti
Tax Preparer
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.