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From: hlb@sally.UUCP
Newsgroups: net.invest
Subject: Re: Question on Rollovers
Message-ID: <122@sally.UUCP>
Date: Wed, 19-Mar-86 11:05:39 EST
Article-I.D.: sally.122
Posted: Wed Mar 19 11:05:39 1986
Date-Received: Sat, 22-Mar-86 20:39:17 EST
References: <4436@ut-sally.UUCP>
Reply-To: hlb@sally.UUCP (Howard Brandell)
Distribution: na
Organization: Loral Instrumentation, San Diego
Lines: 20


If you wish to retain the stock then the best option is to open a self-
directed IRA at a brokerage firm.  That account would be opened as a
ROLLOVER account and should be maintained separately from any CONTRIBUTORY
account that you may have.  Once the securities are in the IRA you are free
to sell them and avoid any capital gains.  Of course, at the time of
distribution from the IRA; at the proper age; all distribution from the IRA
is taxable at your then tax rate.

Of course, once the stock is in the IRA you may wish to hold onto it if
you feel it will go up, if it pays good dividends or you expect a split,
etc.  Alternatively, if you perceive a market shift then you may wish
to move from the stock position to an alternative investment.  You cannot,
however, sell the stock on the street, take the cash and put that into
your current IRA because that would trigger a capital gain.

A point to remeber: If you retain the stock and it drops then you cannot
deduct a capital loss on your taxes.

Hope this helps.