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Author: JoeSchmoe Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75626  
Subject: Contributing equities to Roth IRA Date: 7/1/1998 3:11 PM
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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
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