transferring stock from personal account to Roth

malibu.ron · Joined: 25 Aug 2007 Posts: 4

I purchased $10,000 worth of stock in my personal account two years
ago that is now worth $5000. I am ready to fund my Roth account
$5000. My broker said I could fund it with cash or securities. If I
transfer the shares originally costing $10,000, but now valued at
$5000, can I take the $5000 loss on my current tax return.

Archived from group: misc>taxes

Phil Marti · Joined: 25 Aug 2007 Posts: 2520

wrote:

>I purchased $10,000 worth of stock in my personal account two years
> ago that is now worth $5000. I am ready to fund my Roth account
> $5000. My broker said I could fund it with cash or securities.

That's why their fine print tells you not to rely on them for tax advice.
They may not know their butts from second base, which is the case here.

All IRA contributions must be cash. You cannot move securities from a
taxable account into an IRA under any circumstances. See IRS Publication
590.

> If I
> transfer the shares originally costing $10,000, but now valued at
> $5000, can I take the $5000 loss on my current tax return.

You can always sell the shares you hold, resulting in a capital loss on your
tax return. However, you must wait 30 days before buying them back in your
IRA. This is called the "wash sale" rule, and you can read about it in
Publication 550.

--
Phil Marti
Clarksburg, MD

maliburon64 · Joined: 28 Feb 2008 Posts: 1

On Feb 27, 3:22 pm, "Phil Marti" wrote:
> wrote:
> >I purchased $10,000 worth of stock in my personal account two years
> > ago that is now worth $5000. I am ready to fund my Roth account
> > $5000. My broker said I could fund it with cash or securities.
>
> That's why their fine print tells you not to rely on them for tax advice.
> They may not know their butts from second base, which is the case here.
>
> All IRA contributions must be cash. You cannot move securities from a
> taxable account into an IRA under any circumstances. See IRS Publication
> 590.
>
> > If I
> > transfer the shares originally costing $10,000, but now valued at
> > $5000, can I take the $5000 loss on my current tax return.
>
> You can always sell the shares you hold, resulting in a capital loss on your
> tax return. However, you must wait 30 days before buying them back in your
> IRA. This is called the "wash sale" rule, and you can read about it in
> Publication 550.
>
> --
> Phil Marti
> Clarksburg, MD

Phil,

As usual you were Johnny on the spot with a detailed response - thank
you.

I asked the broker to check on my inquiry and she did, confirming it
would be ok.

Thanks

Ron

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