The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: IRA question||Date: 6/10/2003 3:43 PM|
|Author: JAFO31||Number: 65764 of 125423|
IrishSpy: "I was directed here with what may be a silly question about IRAs. I currently have my stocks in a plain-old, everyday taxable account. Is it possible to use these to open an IRA, much like one transfers shares when switching brokers? I suspect it isn't, but I have found a firm answer when looking around."
No you cannot transfer the existing stocks to an IRA. Your suspicion is correct. As a general rule, the only "new" value that can be placed in an IRA is dollars. Stocks and other items already in an IRA can be transferred to another IRA.
If you want to use the current stocks, you will need to sell them recognize gain or loss, as appropriate, use the net proceeds to fund the IRA, then repurcahse the same stocks if you still want to own them (and avoid the wash-sale rule if you sold for a loss).
If you want IRC citation, you will need to wait for one of the resident pros to responds.
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