60 Day Rollover Followup
Sorry, I just posted about the 60 Day Rollover and forgot a question. Can I sell any shares in the IRA that were transferred directly from the 401K before the brokerage account shares are rolled over? Or should I wait until I roll over the brokrage account shares to the IRA before anything is sold from this lump sum distribution? If the shares start going up in value, I’m inclined to sell some that are presently in the IRA account but do not want to jeopardize myself with taxes due.
Thank you.
Judy
Permalink Submitted by Alan Spross on Fri, 2008-10-10 23:32
Judy,
You may sell the shares already in the IRA anytime you wish. You do not need to wait for any additional rollovers you may complete from the taxable account.
Just in case you happen to fall in the 15% bracket this year, note that any LT gains carry a -0- rate instead of the usual 5% rate. That would limit your taxes to the cost basis portion of the shares, although that cost basis itself may be pushing you above the 15% marginal rate.