The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: IRA question Date:  6/10/2003  7:38 PM
Author:  JAFO31 Number:  65773 of 127745


<<<<<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).>>>>>

"I don't think you really meant to leave this as broad as it is. The stocks are currently in a taxable account. Any deposits to an IRA are limited to $3,000 (or $3,500) for 2003, in cash, as you mentioned.

The OP can check all this out in IRS Publication 590."

You are correct, Phil. I was focused on the source of the new value, but clearly should have noted the limits or generally noted that all other IRA rules applied.

Gracias, JAFO

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us