Roth IRA

Robert Morse said:
When I had my own BD, I had a profit-sharing plan. I shut down that BD when I was 50 years old. I went through a number of years with materially lower income in my transition to sales. During those years, I would move blocks of cash to my Roth IRA, paying a very low tax rate. Today I'm 60 years old and only invest or trade-in my Roth. I love it that I do not have to report trades at year-end and know that I will never have to pay taxes in the future on this money if I ever take it out. For me, it worked as expected. I'm VERY happy with that planning and that decision.
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Squirrel...Robert, don't know if you could answer this question. I asked my CPA...He said it may take him hours to give me an answer. I told him "forget it"...Not worth the cost. Here is the scenario...Could you make this trade (Roth IRA) without the IRS questioning it.

Say Boeing is at $211. and you buy 100 shares. You then do a leap...Sell to open the Jan 22 $210. You know this would be a losing trade...But profitable because of the option money. Could you do this in your Roth?? Could it be done in a regular account??
 
If approved for Option Level 1, and you have enough cash in your account for the net, A buy-write is certainly allowed in both an individual account and an IRA. I’m not sure why you think this is a tax question or why you would certainly lose money.
 
Robert Morse said:
If approved for Option Level 1, and you have enough cash in your account for the net, A buy-write is certainly allowed in both an individual account and an IRA. I’m not sure why you think this is a tax question or why you would certainly lose money.
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I could see it in a Roth IRA...Taxes paid. But with a regular IRA or individual account, you knowingly would be losing money on the underlying stock. Does the IRS care??
 
Robert Morse said:
How can you know you will lose money on the stock?
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Good point...If it gets called away. So the IRS does not care about this?? A "no" answer would be fine. You could take this further...Sell a covered call for BA Jan 22 $190. or $180. You have a large long term capital loss to use against your long term capital gains...
 
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