A 62-Year-Old Wants In on SpaceX’s 37% Pop.
Holding It in a Roth vs. a Brokerage Account Changes Everything at Tax Time
Quick Read – SPCX surged 37% from its $135 IPO price in five trading days, briefly hitting a near-$3 trillion valuation before retreating to around $185. – Selling SpaceX in a taxable brokerage account can trigger the tax torpedo, pushing up to 85% of Social Security benefits into taxation. – Roth IRA withdrawals don’t count toward provisional income or IRMAA, shielding both Social Security benefits and Medicare premiums from a large stock gain’s tax impact. – A 62-year-old who just stopped working full-time is staring at the same headline everyone else is staring at this week. Per Barron’s, SpaceX rose about 37% from its $135 IPO offer price in its first five trading days, adding $673.8 billion in market cap, the largest market-cap gain following a U.S. IPO in the nation’s history.
It briefly touched an intraday valuation of nearly $3 trillion, momentarily the fourth-largest company, before slipping about 8% over two days to settle as the sixth largest. Shares of SpaceX (NASDAQ:SPCX) closed at $185 last week, far above the stock’s debut price. He has cash in a brokerage account, a Roth IRA he funded for years, and Social Security he plans to start at full retirement age (FRA).