I have some stocks in a taxable account. Can I use them to fund my Roth IRA instead of using cash?

IRAs, Stocks
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December 2016
86% of people found this answer helpful

You cannot directly transfer stock from a taxable account into a Roth IRA. Roth contributions are made using after tax dollars.

You would need to first sell the stock in the taxable account and then you could transfer the cash proceeds to your Roth IRA account. You could, of course, re-purchase the same stocks in the Roth IRA, but you still end up paying all taxes due on investment gains from what was sold in the taxable account.

Stephen Rischall, CRPC
1080 Financial Group

December 2016
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