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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
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I believe that all contributions to a Roth must be cash, so you'd have to sell the stock and take the tax hit. :(

eric
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Sorry, IRA's only accept cash. You will need to sell the stock, pay the taxes & put the net proceeds in the ROTH.

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hbogart Date: 4/2/99 12:53 PM Number: 9626
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

It would be nice. But it's also a rather extreme hope. The Roth allows you to put post-tax dollars into the account, grow it your whole life, and NEVER pay more taxes on it. Your hope is "Well, yeah, that's a cool offer and all, but do I really have to pay the smidgen of tax up front? I'm not a tax expert, but I'm pretty sure the answer is yes.
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You cannot transfer stocks into IRAs. If you want to put the Bank of America stock into there, you're going to have to sell it, and then transfer it. There's no other way around that.
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Oh well! Thanks, everyone.

hb
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