Here's a quick question directed to all of fooldom who may have the knowledge:1) If I move shares of a mutual fund (don't worry - it's a low-cost fund)into a Roth IRA, and then, hypothetically the fund goes bankrupt, can I write-off the loss? Or am I better off just keeping the shares in a taxable account....What d'ya think?
By law, the only thing you can put into an IRA is MONEY. If you already have shares in a traditional IRA that you would like to transfer to a Roth, they go in as of their value on the date you make the conversion, and that's the price on which you pay taxes. See preceding threads about very special circumstances in which you might be able to deduct losses in a Roth. The Roth is intended to be a long term investment and hopefully you choose well enough that the value of the account at retirement time won't be less than its cost. Best wishes, Chris
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