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I'm hoping to get some advice. My company is about to give what will amount to about $5500 to $6000 in shares of stock (this will be after taxes) in the form of a certificate/certificates that they will be mailing to my home. My question is what would be the best thing to do with it? I'm thinking about putting as much as I can in a Roth IRA but I really don't know. Any words of wisdom would be appreciated as I'm a complete financial moron. Thanks.
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Hi,

IRAs (Roth and traditional both) are cash-in, cash-out. You can not deposit a stock certificate directly into an IRA (unless you are talking about a 401k->IRA or IRA->IRA rollover).

You'd need to sell the stock, put the money into the (Roth) IRA and then buy the stock back inside the IRA. And the cap on IRA contributions is $2000 for this year; it'll be $3000 next year.

Good luck,
JDOyster
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tcwwbh,

If you are getting certificates, you aren't getting cash. You will be an owner of the company. Whatever the stock price of the company is how much value you will have.

You could put it into an IRA, but you would have to sell some (or all)of the stocks and get the money, then invest it.

You could also hold the stocks. In a few years, they may be worht more than the $6000 you have now. Could be less too, but it is a bright sunny day here, don't want to think about that now.

Another option is to see if your company has a DRIP. If you think owning your company is a good deal, you could buy more stock each month. Sometimes the company will let you do this anyway, straight from payroll.

So, you have several choices, they are all pretty nice.

Good luck

fredinseoul
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You'd need to sell the stock, put the money into the (Roth) IRA and then buy the stock back inside the IRA. And the cap on IRA contributions is $2000 for this year; it'll be $3000 next year.

Of course, the original poster could always wait until January to sell the stock and make a full $5000 contribution at that time - $2000 for 2001 and $3000 for 2002...

ACME
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