Transfer or Sell?



Two quick questions;

First is there a difference in Money (calculations,
taxes, etc.) if you 1.) transfer out from a 'stock' to
a 'cash' and then transfer in a 'stock' from the 'cash'
or 2.) if you sell stock to cash, then buy stock from
cash or 3.) transfer one 'stock' to another 'stock'? All
of this is occuring from within a 401(k) or IRA account.

Second, is there a reason why I should deposit into a 401
(k) or other IRA with a contribution, then 'buy' an
equity from the contribution instead of just directly
buying the equity from my checking account? Should these
be done via transfers?

Thanks in advance for advice you may have for me.



Dick Watson

As to your the three options of your first question, I think you will find
that only one of them works. Transfer (as in "Transfer In" or "Transfer Out"
in an investment account) is used to transfer x shares in y investment from
a account to b account. It won't convert shares to cash and it won't convert
shares in investment x to investment y.

As to your second question, it makes no difference. If your IRA is like
ours, and has no cash brokerage account, I'd buy the investment directly
from checking.

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