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I have recently started a regular mutual fund and I would also like to
start an IRA fund but at this time I am a bit strapped for cash. Since
this is tax time would it be beneficial for me to transfer lets say
$1000
of my current mutual fund into a traditional IRA account then use that
amount as a deduction. I do know the benefits of the Roth IRA so I
would
like to convert the traditional IRA to a Roth IRA sometime after the
April
1 deadline. Would the potential penalties outweigh the immediate
benefits?
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Since this is tax time would it be beneficial for me to transfer lets say $1000 of my current mutual fund into a traditional IRA account then use that amount as a deduction.

No can do. All contributions to IRA accounts must be in cash.

Would the potential penalties outweigh the immediate
benefits?


I'm sorry but you lost me on this one. What potential penalties vs. what immediate benefits?
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You need to do some reading on basic IRA concepts. Please read the articles in the FAQ on IRAs. You're in no rush, so take your time and absorb them. Then come back if there's something about your situation you have questions about.

Phil Marti
Tax Preparer
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