UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: hbogart Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76242  
Subject: putting stocks in Roth Date: 4/2/1999 12:53 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Fools,

I'd like to open a Roth (actually, I have, but with not much $ in it). The difficulty is a shortage of funds; my husband and I are mostly working now to pay down debt (_not_ credit card debt, but former credit card debt now converted to a loan on his 403b) and build a small "cushion." I contend that we can do this _and_ have Roths because our credit union allows one to open a Roth money market with as few as $25 and of course we can yank the principle out at any time (I have opened the Roth; hubby hasn't). However, obviously, more $ in the Roth would be better, and it would be nice to have it in a higher-yield situation (present yield/risk ratio is good, though, 5.5%).

My question is this: I own 110 shares of Nationsbank stock. These my grandmother gave me shortly before she died (in 1980) and I have never done anything with them, they are just there. Thus, I have never paid taxes of any kind on them (except on the dividends, or course, and no I don't reinvest though I know I should). Of course, they have appreciated substantially in this time, though I know not how much.

Could I somehow put the stocks themselves into a Roth? The difficulty here is the combo of income/tax: they weren't income (but a gift), and I've never paid tax on them. I suppose, of course, that I could sell them, pay the tax, and invest the $ in a Roth. But it would be nice if I could just throw them in the Roth itself -- is there a loophole? Does anyone know?

Thanks!
hb
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Considerable Headwinds for Profire Energy?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement