Roth IRA Contribution using stock
Can an individual who owns a stock in their personal account (non-qualified acct) take that stock and put it in a Roth IRA for a Roth IRA contribution? For the sake of the question we will assume the value of the stock would equal any contribution limits or amounts. i.e I bot xyz in my brokerage acct. for $1,000 now it value is $4,000 and I would like to put it in my Roth for my yearly contribution.
Permalink Submitted by Alan Spross on Thu, 2009-04-16 21:40
No. Regular IRA contributions, Roth or traditional, must be made in cash.
Conversion contributions can be done “in kind” but the originating account for a Roth conversion must be a traditional IRA or qualified retirement plan, not a taxable account. To get the xzy in your IRA, you would have to sell it, contribute the cash, and then re purchase in the IRA. However, you should also be aware that if you sold xyz for a cap loss and re purchase in your IRA within 30 days before or after, it would be a wash sale, and your loss on the taxable sale would be disallowed. If you have a gain, no problem in selling and repurchasing in the IRA.
Permalink Submitted by Ken L. Stone on Fri, 2009-04-17 15:31
Thanks for the reply—I didn’t think it was possible as stated however people can come up with and do some wackey things. Thx again Ken