The tax considerations when moving money from IRA to Margin, IRA to Roth IRA and withdrawal from Roth
IRA accounts.
When you move stock from your Traditional IRA to your Margin account, it is not obvious how they price the
stock. When I moved both WFC.PR.J and CMO.PR.B at the same time, it was hard to determine the price of
each when it came time to sell these stocks and declare the capital gains. They gave a seminar on Roth IRA
conversion in 2010 and the woman stated that they use the stock's closing price as of the day that the
conversion is done.
When moving money from an IRA to a Roth IRA, the same problem doesn't occur because when you sell a
stock in your Roth IRA, it is not a captial gains event.
Once you start to withdraw from your Roth IRA, the excuse should first be that you are using the money to
pay taxes on the result of converting more money from the Trad IRA to the Roth IRA and that you are doing it
while the tax rates are low.
Keep your margin account money low in order to keep most spare cash under the Roth IRA umbrella and to
reduce entries on tax forms.
Starting in 2010, there is no limit to how much income you may have and still convert some or all of your
IRA to a Roth IRA.
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