GMK83
Well-Known Member
I’m happy we got the opportunity to participate in the IPO. I transferred the shares to my preferred brokerage. Happy for those at Rivian getting to see there hard work pay off.
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Heart and vascular. Use protamine on both.Gotta get those backdoor roths! Do you work with vascular patients?
+1. Unless you have a sizable traditional IRA, you should be funding a backdoor Roth on Jan 1 each year.
Open a traditional IRA. Put $6k (post-tax) in it. Convert it to a Roth. Do that every year. Enjoy the tax free growth.After researching for a few min on the good old internet...I called my dad (financial advisor, started own firm 35 years ago, I trust him...) who said he's had 2 people out of 4000 clients ask for a backdoor.
You have to convert your 401/403 (pretax) to the roth and pay that tax up front, so lets say you wanted to move 100k you'd have to pay tax on that (50%) - so 50,000 and then hope your Roth makes the money back over 30 years and that the tax laws don't change. Not to derail but the limits are under change in the current BBB bill. So long story short since you already have pretax money in a 401/403 then keep it, and invest the 50k you'd pay in tax (which has already been taxed in one or multiple ways) and you'll come out ahead.
Yeah. The IRS will definitely tax that.I’m looking at $6K in profit on my sale of the 175 shares, but reinvested more into the same stock, so I’m hoping the IRS won’t smack me for that one. It might have made more sense to just move my 175 shares between brokerages. I guess I’ll find out.
BACKDOOR Roth IRA, been using that for years......Not everyone has a Roth IRA for various reasons. I never could do one during residency and then on day 1 of being a practicing physician you get priced out.
Were there any fees associated with the transfer? I’d like to do the same as I prefer a different brokerage but have never transferred securities before. I understand there are some specific timelines. Naive question, but nothing to worry about with price changes/etc because the securities transfer is based on shares, correct?I’m happy we got the opportunity to participate in the IPO. I transferred the shares to my preferred brokerage. Happy for those at Rivian getting to see there hard work pay off.
Legit. Which side of the BBB are you?Heart and vascular. Use protamine on both.
After researching for a few min on the good old internet...I called my dad (financial advisor, started own firm 35 years ago, I trust him...) who said he's had 2 people out of 4000 clients ask for a backdoor.
You have to convert your 401/403 (pretax) to the roth and pay that tax up front, so lets say you wanted to move 100k you'd have to pay tax on that (50%) - so 50,000 and then hope your Roth makes the money back over 30 years and that the tax laws don't change. Not to derail but the limits are under change in the current BBB bill. So long story short since you already have pretax money in a 401/403 then keep it, and invest the 50k you'd pay in tax (which has already been taxed in one or multiple ways) and you'll come out ahead.
There is no fee. They will transfer whole shares and liquidate fractional shares, but that isn’t an issue here as you didn’t have the ability to buy a fraction of a share.Were there any fees associated with the transfer? I’d like to do the same as I prefer a different brokerage but have never transferred securities before. I understand there are some specific timelines. Naive question, but nothing to worry about with price changes/etc because the securities transfer is based on shares, correct?
Overall I think the BBB is going to devastate America for decades, even worse than the New Deal did (was bailed out by WW2 and the rebuild). There are some good provisions in it but overall its vote pandering and will cripple the middle/upper middle class. Wont affect poor and mega rich will always find a way to skate the rules.Legit. Which side of the BBB are you?
I think those 401/403/457 conversions are mega-backdoors; I’m not that facile with this backdoor stuff as our organization allows nearly $40k total in traditional or roth contributions into tax advantaged retirement accounts so the tax diversification is built in to mitigate the potential for needing to do a mega back door. I think many if my colleagues do the backdoor IRA though.
Oops, I meant “blood brain barrier” - realize that Biden also has a BBB plan lol.Overall I think the BBB is going to devastate America for decades, even worse than the New Deal did (was bailed out by WW2 and the rebuild). There are some good provisions in it but overall its vote pandering and will cripple the middle/upper middle class. Wont affect poor and mega rich will always find a way to skate the rules.
To be fully honest (its no ones business here). I'm mid 30s and in the HINRY category (High income, not rich yet). So the 10M cap / income limits / 2028 expiration are all in play for me.
source: They’re Baaaaaack… Limits on Mega, ‘Back Door’ Roths Reemerge | AMERICAN SOCIETY OF PENSION PROFESSIONALS & ACTUARIES (asppa-net.org)
To be fair, the only thing that I would spend any capital gains resulting from a sale of RIVN would be to purchase even more shares at a lower price point. My desire to hold RIVN is based on my belief in the company, desire to see them succeed, and a long term investment that I am confident will pay significant returns in 20-30 years.All this discussion about short term gains or losses, tax exposure, and "backdoor" strategies....Geez. Its exhausting.
Purchasing shares in a company is an investment. Investment strategy is an oxymoron. Buy and hold for long term and only take cash out when growth goals shift to expenditure or reallocation goals and (almost) NEVER sell a stock within 12 months of purchasing. That along with dollar cost averaging (when in the "growth" mode) are the ONLY two proven methods to maximize returns and minimize tax exposure. (or maybe a blind trust in South Dakota ;-)
Short term flipping (<12 months) is like having a "one night stand" with a stock. Might feel good in the moment but often it becomes obvious, "I wish I'd held on to that one". (TSLA, AMZN, NKE, etc or just about any stock on the S&P 100).
Watch RIVN for now. Let the speculation and volatility run its course. If the stock dips back down to close to or below $78, then it makes sense to buy more shares. After 6-12 months has passed, the "crazies" will have moved on to the next big thing. Then begin a dollar cost averaging strategy. Do that for the next 24-36 months and then let it cook for a decade or more. In 2032 my guess is those who married and cared for their RIVN investment will be much happier than the "swingers" who eked out a small profit and then spent the money on beer cigarettes and lottery tickets.
Oops, I meant “blood brain barrier” - realize that Biden also has a BBB plan lol.