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Okay, I'm looking at opening a Roth IRA. I'll either get it done this year or shortly there after. The answer to this question won't have an impact on that either way. So here's the question. What tax implactions do I have if I transfer stock to a Roth IRA. The example below explains one of the methods that I might fund my Roth IRA.

If I make $40,000 a year, my company allows me to buy up to 10% of my income of company stock ($4000). This is done twice a year (2x$2000) at the begining of the year and at the middle. When ever this stock is bought, I get a %15 discount on the price, say $10 a share.

So at the start of the year I will have accumulated $2000 in my account which they will buy a certain number of shares for me ($2000 / [$10 x 85%] = 235 shares). The real value of the shares at that point would be 235 shares x $10 or $2350.

I want to transfer $2000 of that to my Roth IRA (transfer the shares, not the actual money). What are the tax implacations of doing this if I then sell the shares in my Roth IRA?

Thanks for the help,
Hummers


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