transfer stock in trad ira to roth

Submitted by Frank on Mon, 2014-04-21 05:17

Hello,

Can I transfer my stock from a Traditional IRA to my Roth Ira ?

If so, what value do I put on it to determine my tax liability?

Thanks,
Frank



Submitted by Alan - IRA critic on Mon, 2014-04-21 18:21

Yes, you can convert in kind as well as in cash. The value of shares will be determined by the IRA custodian at the time of distribution according to their usual procedures. That value will be used to determine the Box 1 gross distribution amount on the 1099R. If you convert more than one security your 1099R value will not be enough to know the breakdown per security, and you would have to get that from your transaction statement. Also, if you have basis in your TIRA from non deductible contributions, the taxable amount will be less than the gross distribution.



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