Is it possible to purchase stock directly from a company and then roll this into an Ameritrade IRA for free?

Question

So instead of paying a commission to purchase a stock through Ameritrade, is it ever possible to just purchase stock DIRECTLY from a corporation and then once the sale is complete, roll this stock into an Ameritrade IRA? (so in other words, the stock is purchased and NO other fees come into play, commission or otherwise.)

Yes, this is a beginners question, so go easy on me.

And yes, I already contacted Ameritrade about this, but as their answer might possibly be slanted, I thought I'd pose it here, so there is NO NEED to send me the doclink to Ameritrade.com, I know where to find it, thanks.

Answer 1

I'm afraid you can't do this. The reason being is that all direct purchase plans that are out there will only allow you to purchase taxable shares. Once you own these taxable shares the IRS will not allow you to put these shares into a tax sheltered account.(IRA) If one was able to do this everyone would buy stock directly from a company and then put it into their IRA where it could then be sold and not be subject to taxation. I assume that you are trying to maximize the amount of money working for you in your IRA. I get this question a lot from clients. The next question that usually comes is can I add extra money to the IRA to make up for the commission. The answer to that is also no. The maximum annual contribution that the IRS allows does not factor in commissions into the scenario. I hope that this was helpful. Good luck.

Answer 2

it is up to ameritrade to decide what they will charge you to do this.
it might be more than the $10 comission ameritrade charges per trade/

Answer 3

Purchase from an IPO, I don't think they would bother with you with how many shares you're going to buy.

Answer 4

No, that would be illegal unless you were taking over that firm.