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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121317  
Subject: Re: Contributing stock to a Roth Date: 1/24/2001 6:04 PM
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az58fool: "I own shares of a stock which have appreciated. If I contribute these to my Roth as shares, how are they valued for the contribution?"

Nice try, but not allowed. New contributions to any IRA must be in cash. Rollovers (either trustee-to-trustee or one where you take possession for no more than 60 days [subject, in all likelihood, to 20% withholdin]) may contain permitted assets other than cash.

"Provided I can transfer in kind, I think they would be valued at the basis level. Then when the stock is later sold within the Roth, the gains will be protected from taxation. Is this true or would the stock be valued at current value?"

Well, it really is moot, but if it were feasible (AND IT IS NOT), it more likley would be value on date of contribution -- analogous to a gift or to the conversion of a traditional IRA to a Roth IRA.

Regards, JAFO
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