Can stock be transferred to an IRA?
September 23, 2005
Date: Thu, 25 Aug 2005
Dear Mr. Gray,
I was at your website last night and was hoping I might ask you an IRA question.
My husband transferred some shares of stock received in a class action suit as an IRA contribution.
My broker tells me that stock can't be transferred to an IRA. Is there an exception to this rule? I have a few shares of stock that I also would like to contribute to my IRA.
Date: Wed, 14 Sep 2005
IRA contributions must be made in cash. (Internal Revenue Code Section 219(e)(1).)
The only exception is that when property is received as a distribution from an IRA that is later rolled over to another IRA, the property must be rolled over intact. (Section 408(d)(3)(A)(ii).)
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