Guest Diana Posted March 14, 1999 Posted March 14, 1999 After I open a Roth IRA with cash, can I use the money to purchase stock in the company I work for through an employee stock purchase plan where we receive a discounted price? Are there any tax consequences to this which are different than simply purchasing stocks through a broker with my Roth IRA money?
John G Posted March 14, 1999 Posted March 14, 1999 I believe the answer is no. The investments that you can make with a Roth IRA are limited by both Federal IRA limitations (such as collectables) and the constraints imposed by the institution you choose as a custodian. Stock options, pink sheet stocks, commodities and sometimes IPOs will be not allowed. Talk with your custodian about what they will support. They should also be aware of the federal limits as well. If the deal your company offers is good, the simple answer is do both if you can.
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