Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Green Oasis Environmental, Inc. (GRNO) -- Ignore unavailable to you. Want to Upgrade?

To: Norman H. Hostetler who wrote (8960)	3/18/1998 4:29:00 PM
From: John Hensley	Read Replies (3) \| Respond to of 13091

Norm- <<So I owe no income taxes, except the 10% early distribution penalty, which effectively adds 5 cents per share to the 50 cent cost basis.>> This statement is not entirely correct. First, the 10% early withdrawal penalty is 10% of the taxable amount which is the gain on the price of the stock if this is a nondeductible IRA. If the value of the portfolio loses money, you don't have a positive taxable amount so you have no penalty. Second, the regulations state "the early withdrawal penalty of Code Sec. 72(t) does not apply to qualified rollover contributions to a Roth IRA from a regular IRA" Research Institute of America 12/18/97.