While you can convert in-kind (ie, move shares instead of cash) between tax-deferred and Roth and possibly in a direct rollover, I'm not sure an indirect rollover (where you take possession of the asset for less than 60 days) will accept shares into the Roth. Part of the problem of doing that is that the shares could increase in value during the deposit into the Roth, thus making the indirect rollover amount be more than what was allowed to be received in the Roth. In fact, you would be depositing more shares than were sold when leaving the tax-deferred account or be adding extra cash (as you suggest).
In other words, I suspect the lawmakers/ IRS could foresee someone trying to do this, so put rules in place. For example, you can only contribute cash to an IRA, not shares.
Livesoft, Have you actually done this to confirm it is possible to do or are you speculating that it could be possible?
In other words, I suspect the lawmakers/ IRS could foresee someone trying to do this, so put rules in place. For example, you can only contribute cash to an IRA, not shares.
Livesoft, Have you actually done this to confirm it is possible to do or are you speculating that it could be possible?
Statistics: Posted by celia — Wed Dec 06, 2023 10:11 pm — Replies 24 — Views 1310