What is a tax-deferred rollover?
In a tax-deferred rollover, duplicated stocks are exchanged from one trust to the next, and only the gains on those stocks sold from the terminating trust are taxable. The cost basis (original purchase price) of the exchanged stocks is carried over until either these stocks are sold from the portfolio or you decide to sell your units. A non-tax-deferred rollover may be a suitable choice for you if you (a) hold investments in a qualified account (e.g., IRA-2000) or (b) prefer not to defer tax consequences. Only certain trusts are eligible.
Related Questions
- Are active safety member lump-sum death benefits eligible for a tax-deferred rollover to a traditional IRA or eligible employer plan?
- Are deferred member death benefits eligible for a tax-deferred rollover to a traditional IRA or eligible employer plan?
- Is the $5,000 death/burial benefit eligible for a tax-deferred rollover to a traditional IRA or eligible employer plan?
