Skip to main content
No. of Recommendations: 0
The IRA rules say you can move cash or securities up to $2,000 into your account. If moving securities, what is the cost/value basis? price on day of transfer, price at which bought, or what?

Apologies if you have read this on the strategies folder. Someone there doubted you could contribute securities, but I got that idea from the ETrade IRA signup screen. To quote:

The minimum initial deposit is just $1,000 ($2,000 for margin accounts) in cash or securities. If you are not ready to open and fund an account, sign up for a free membership.
Print the post Back To Top
No. of Recommendations: 0
<The minimum initial deposit is just $1,000 ($2,000 for margin accounts) in cash or securities. If you are not ready to open and fund an account, sign up for a free membership. >

In this case, E*trade is talking about transferring securities from another IRA or qualified retirment plan. You can't open up an IRA and give them securities -- it has to be in cash.

GP
Print the post Back To Top
No. of Recommendations: 0
>> The minimum initial deposit is just $1,000 ($2,000 for margin accounts) in cash or securities. If you are not ready to open and fund an account, sign up for a free membership. <<

Sounds like a "canned reply" for general account applications. You can't even have a margin account in an IRA.

Tim
Print the post Back To Top
No. of Recommendations: 0
Greetings, ICCooke, and welcome. You wrote:

M<<The IRA rules say you can move cash or securities up to $2,000 into your account. If moving securities, what is the cost/value basis? price on day of transfer, price at which bought, or what?>>

No, you have misread what the IRA rules say. You may contribute annually up to $2K in cash to an IRA. You may also transfer an unlimited amount in securities or cash to an IRA from a qualified retirement plan or another IRA. You cannot, though, make an annual contribution of $2K worth of securities to an IRA.

<<Apologies if you have read this on the strategies folder. Someone there doubted you could contribute securities, but I got that idea from the ETrade IRA signup screen. To quote:

The minimum initial deposit is just $1,000 ($2,000 for margin accounts) in cash or securities. If you are not ready to open and fund an account, sign up for a free membership.>>


They are talking about the minimum amount they will accept to open an account here. If you transfer at least $2K of securities from another IRA or an employer's qualified retirement plan, you have met the needed minimum. And BTW…. The market price of the securities on the day of transfer determines the value transferred.

Regards…..Pixy
Print the post Back To Top