Investments from a traditional IRA to a Roth IRA
I’ve moved securities in kind as a distribution from a tradional IRA and into a Roth IRA. Should the cost basis be changed to the transfer date value?
Any info is appreciated, thanks
I’ve moved securities in kind as a distribution from a tradional IRA and into a Roth IRA. Should the cost basis be changed to the transfer date value?
Any info is appreciated, thanks
Permalink Submitted by mk foss on Tue, 2009-01-06 22:21
There is no requirement to keep track of basis for a Roth IRA. The growth of the Roth is tax free and even if amounts are withdrawn in the first five years and become taxable – it’s just the dollars that are taxed; the nature of the income (dividends vs. gain) is not relevant.
The only reason to keep track is for your own purposes – to see how well your investments are performing. Since the information is just for you, you can use any date you choose for the measurement date.