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Strategies & Market Trends : Roth IRA ideas -- Ignore unavailable to you. Want to Upgrade?

To: Bill Shepherd who wrote (44)	2/1/1998 2:18:00 PM
From: John Stinnett	Read Replies (1) \| Respond to of 388

Bill, Concerning tranferring stock from a traditional IRA to a Roth IRA You said "I think they would actually have to sell and repurchase the shares. Otherwise,how could they establish a new basis, what with the nature of the market?? " I recently transferred all of my Oracle stock (since it is down so much) to my newly opened Roth IRA. Waterhouse has a form in which you list the securities you'd like to transfer and in a matter of a few days the stock is transferred. I also proceeded to transfer every other "dog" stock I own to minimize the tax hit. I believe Waterhouse will send me some kind of year end 1099-??? that will list everything I transferred in 98 for tax purposes. Hope this helps, JCS

To: Bill Shepherd who wrote (44)	2/1/1998 3:03:00 PM
From: Mitch Aunger	Read Replies (1) \| Respond to of 388

Bill, Thanks for the reply. I have heard that I need to talk to the custodian of the IRA. And, I guess I will have to. But, I can't see there is ANY way to value the stock other than what I paid for it. It CANNOT be sold on the open market. I can't sell it to anyone without getting approval from the company or the SEC or someone like that. There is NO public market for it so how can someone put a VALID price on it?? After the IPO, I can understand that it can be valued... then it will be trading on an open market. But until then, my only known basis is what I paid for it. Even if the shares could be sold, they can't be re-bought on any market and the private placement is closed so I can't buy more from the company. Thanks Mitch