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Open a self directed IRA with a company like Pensco, fund it with cash and buy the options with a check issued from that account instead of a personal check. If
by owyn 5y ago
Open a self directed IRA with a company like Pensco, fund it with cash and buy the options with a check issued from that account instead of a personal check. If the options are one cent per share and eventually are worth hundreds of dollars, you can avoid the capital gains tax. You can’t withdraw it until you retire though.
- koolba 5y ago> You can’t withdraw it until you retire though. You can withdraw the original principal tax free after five years and profits can be withdrawn at any time by paying income taxes and a 10% penalty. If you have any other assets it’d be stupid to withdraw it though. Tax-free accounts are the last one you want to draw from.