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Author: TMFTaxes 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 124832  
Subject: Re: Cost basis IRA transfers? Date: 9/26/1997 11:24 AM
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<<Is it possible to transfer stocks from a taxed brokerage account to an IRA? Or must I sell them and repurchase?

If a transfer from one account to the other is possible, what is the cost basis? Original purchase basis or value at date of transfer?>>

Thanks for the question, Mike. But I'm not sure that you will like the answer.

In order to "open" or contriute to an IRA account, you must generally do so with cash dollars. Transferring appreciated stock from a taxable account won't work. Now then, if you want to BORROW against your stock account, and fund your IRA with the loaned proceeds (without selling the stock), you can certainly do that. There are obvious risks to this method, but if you have high hopes for the stock, and don't really want to sell it right now, it may be an option for you.

Hope this helps...
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