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Greetings, Elko, and welcome. You asked:

<<I have a traditional IRA that I unfoolishly let languish in a Mutual Fund for far too long. I recently requested that the firm liquidate my position and send me a check (no taxes withheld) for reinvestment elsewhere. I have opened an IRA account with a brokerage firm and intend to deposit proceeds from the sale of the Mutual Funds into that account for the acquisition of stock.
My question is this:
Must the commission(s) for stock purchased be paid from proceeds of the sale of the Mutual Funds?>>


Trading fees must be paid from money that is inside the IRA. If you write a check for those fees, it will be called a contribution to that IRA by the IRS, and that means it counts towards your annual contribution limit of $2K.

You say you closed your old IRA and received a check for the proceeds. Be aware that you have but 60 days to get that money into a new IRA or it will be taxed and penalized an additional 10% if you're younger than age 59 1/2. Don't delay in opening the IRA or you won't like the result.

Now, back to your question. If you want and if you haven't made an IRA contribution for the year yet, you could add money to the deposit to pay the commissions on any initial stock trades. Just be aware that any money you deposit for that purpose counts against your $2K annual limit. The rollover money, of course, does not count against the annual contribution.

Regards....Pixy
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