The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/contributing-equities-to-roth-ira-10223196.aspx

Subject:  Contributing equities to Roth IRA Date:  7/1/1998  3:11 PM
Author:  JoeSchmoe Number:  4100 of 75335

My fiance and I recently each opened a Roth IRA with $500 in each at Charles Schwab. We're in the process of buying a house and saving for as large of a downpayment as possible, so we don't want to put more cash in our accounts. Rather I would like to transfer 10-15 shares of SPY that we currently hold in our Schwab brokerage account into each Roth IRA (thus maxing out the $2000 limit.

Schwab tells us that we need to liquidate the stock, deposit the money into the IRA, then repurchase the stock. This would mean paying commissions of $90 which seems a little dumb.. Is there any reason one can't simply deposit equities into the Roth IRA, using their current price as the "dollar value" (for use in calculating the $2000 contributed)?

Thanks for any help, I can think of better uses for $100 :)

Sam
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us