Loose Lips, I am not an accountant so make sure to verify the following prior to making any transactions. If you want to transfer shares from a liquid account (non-IRA) you could only transfer up to the 2018 ROTH maximum of either $5,500 or $6,500 depending which side of 50 years old you are. For example if you are over 50 you could transfer a little over 19,000 shares at today’s price of .34 (19,000 x.34 = $6,460) to stay within the 2018 ROTH max.
My personal experience has been to transfer IPIX shares from a traditional IRA to a ROTH IRA. In this situation you can call your brokerage firm and they will transfer the shares from your traditional IRA account to your ROTH IRA without selling and rebuying those shares.
For example let’s say you have 100,000 IPIX shares in your traditional IRA. If you transfer them over to a ROTH account your brokerage will send you a form 5498 showing you have a conversion cost of $34,000 (100,000 x .34). When you file your 2018 taxes you would have to pay taxes on that $34,000. At a 25% bracket you would pay Uncle Sam $8,500 for the privilege of converting to a ROTH. It seems steep unless you look at future taxes on shares that dramatically grow in value. Let’s say for example your IPIX shares hit $10 in the future and you are over 65 and want to pull the money out (100,000 shrs x $10 =$1M). In the traditional IRA example you would pay Uncle Sam $250,000 in taxes at that time ($1M x 25%). You could pull that same $1M out of a ROTH and pay zero taxes. So using today’s .34/share vs a future $10/share you would save 241,500 in taxes for every 100,000 shares at $10 using a ROTH vs traditional IRA. These are big numbers but there are investors on this board that have anywhere from 2x, 3x, 4x, 5x and 10+x these amounts of shares. $10/share is the minimum that IPIX future shares will be if only 1 of the 3 major platforms makes it to market. If all 3 are successful I believe we are looking at a 3 figure share price at some point. JMHO
My personal experience has been to transfer IPIX shares from a traditional IRA to a ROTH IRA. In this situation you can call your brokerage firm and they will transfer the shares from your traditional IRA account to your ROTH IRA without selling and rebuying those shares.
For example let’s say you have 100,000 IPIX shares in your traditional IRA. If you transfer them over to a ROTH account your brokerage will send you a form 5498 showing you have a conversion cost of $34,000 (100,000 x .34). When you file your 2018 taxes you would have to pay taxes on that $34,000. At a 25% bracket you would pay Uncle Sam $8,500 for the privilege of converting to a ROTH. It seems steep unless you look at future taxes on shares that dramatically grow in value. Let’s say for example your IPIX shares hit $10 in the future and you are over 65 and want to pull the money out (100,000 shrs x $10 =$1M). In the traditional IRA example you would pay Uncle Sam $250,000 in taxes at that time ($1M x 25%). You could pull that same $1M out of a ROTH and pay zero taxes. So using today’s .34/share vs a future $10/share you would save 241,500 in taxes for every 100,000 shares at $10 using a ROTH vs traditional IRA. These are big numbers but there are investors on this board that have anywhere from 2x, 3x, 4x, 5x and 10+x these amounts of shares. $10/share is the minimum that IPIX future shares will be if only 1 of the 3 major platforms makes it to market. If all 3 are successful I believe we are looking at a 3 figure share price at some point. JMHO
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