Different Roth contribution question

[larrytbm]

Is it possible to make a Roth contribution in assets rather than dollars? Meaning, can I move stocks from a brokerage account to a Roth or should I liquidate the stock? What about using stocks in my brokerage for a Roth IRA contribution for my wife?

 

[NgineER]

No-don't believe you can.

 

[bingybear]

you can do roth conversions in kind because the tax on the conversion is paid. to put an equity in a roth or even a tIRA would require any tax owed be paid. So if you had a gain there would be tax owed. But I agree with NgineER, I don't think it is allowed.

 

[larrytbm]

I'm not referring to a conversion but a $6500 Roth contribution using an asset rather than dollars. My understanding is that if you have taxable income higher than the contribution, then it is allowed. But seems to me there is no requirement that you use specific funds or that it be dollars vs. an asset for the contribution. I guess the only advantage of a contribution vs a conversion is that at the end of 5 years, even the last amount contributed is tax free, vs each conversion has it's own 5 year waiting period. Any other thoughts or corrections to my understanding?

 

[bingybear]

I'm not referring to a conversion but a $6500 Roth contribution using an asset rather than dollars. My understanding is that if you have taxable income higher than the contribution, then it is allowed. But seems to me there is no requirement that you use specific funds or that it be dollars vs. an asset for the contribution. I guess the only advantage of a contribution vs a conversion is that at the end of 5 years, even the last amount contributed is tax free, vs each conversion has it's own 5 year waiting period. Any other thoughts or corrections to my understanding?

see the link I put in my reply above (not this post). The answer is no.

 

[panacea]

+1

not allowed- contributions must be in cash.