If you’re using an IRA, to DRS you have to transfer to brokerage, which counts as a withdrawal, then transfer to the TA, then to a holding company, who then moves it back into an IRA to hold the DRS shares.
This is an indirect transfer, as opposed to a direct transfer (moving from 401k to IRA or moving from one IRA to another), so you can only do one transfer per 12 months (not calendar year, 12 months from the initial withdrawal date) without incurring tax penalties.
It’ll be interesting to see what happens with IRAs given how many hypothecated shares there are of so many stocks, and how do few people have DRSed any shares at all.
That’s one time per 12 months that is plebians are allowed to somewhat take actual semi-ownership of the stocks we “own”.
I'm not worried about DRSing anymore. I'm doing the 50/50 approach. 50% DRS, 50% split into 2 brokerages. Got shares of GME in IRAs etc, not going to take the tax hit again like I did back in 2023. Had to pay 20K in tax penalties to remove them from IRA.
I think the plan will cover all bases. Even the synthetic shares created.
This is probably a common noticing in the area, but how awesome is it that the stock market is getting exposed on CAT errors through events kicked off by someone named Roaring Kitty? Just one of those “coincidences” that’s always enjoyable.
If you’re using an IRA, to DRS you have to transfer to brokerage, which counts as a withdrawal, then transfer to the TA, then to a holding company, who then moves it back into an IRA to hold the DRS shares.
This is an indirect transfer, as opposed to a direct transfer (moving from 401k to IRA or moving from one IRA to another), so you can only do one transfer per 12 months (not calendar year, 12 months from the initial withdrawal date) without incurring tax penalties.
It’ll be interesting to see what happens with IRAs given how many hypothecated shares there are of so many stocks, and how do few people have DRSed any shares at all.
That’s one time per 12 months that is plebians are allowed to somewhat take actual semi-ownership of the stocks we “own”.
I'm not worried about DRSing anymore. I'm doing the 50/50 approach. 50% DRS, 50% split into 2 brokerages. Got shares of GME in IRAs etc, not going to take the tax hit again like I did back in 2023. Had to pay 20K in tax penalties to remove them from IRA.
I think the plan will cover all bases. Even the synthetic shares created.
I agree.
In order to drain the cabal slush funds that is the hedgies' accounts, those synthetic shares are going to have to be enforced I suppose.
We can't let them off the hook. That's the point.
Agreed.
Yes, though I do think we should be looking to DRS all shares of all long-term held assets in the long term. Its not just a GME issue.
Or maybe they’ll make the problem irrelevant by rolling out a better trading platform, who knows.
I am hoping for a similar thing, though.
I think we'll be moving to tokenized stock system backed by blockchain. No more manipulation and we'll have full transparency.
This is probably a common noticing in the area, but how awesome is it that the stock market is getting exposed on CAT errors through events kicked off by someone named Roaring Kitty? Just one of those “coincidences” that’s always enjoyable.