Thank you to all those who responded to my question. I had
a feeling my broker was not right about this. Also thanks
for reminding me the new limit for nonworkers is $4000 under
age 50.

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"A.G. Kalman" <glendale202-tax[at]yahoo.com> wrote:

- quote -

It's the last line of page 6 of Pub.590. It's in the
section on traditional IRAs, but the section on Roth IRAs
says that all the rules of traditional IRAs apply except
where modified in the Roth section.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"melrobb" <melrobb[at]tampabay.rr.com> wrote:

- quote -

Well for one thing, the $2,000 limit went up. Several years
ago.

As for the recharacterization, that's an issue for your
broker to work with. There is no real tax effect so long as
you are Roth eligible.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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"melrobb" <melrobb[at]tampabay.rr.com> writes:

- quote -

No. Annual contributions have to be in cash. And even
if the broker works behind the scenes to make it look
like the stock was just transferred from a regular account
to the IRA, it'll still be treated for tax purposes as
a sale and a cash contribution.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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I am in a similar situation. I have about $4500 in a mutual
fund that i have owned since like 1995 that i would like to
move to a ROTH IRA. Could i put some in this year, then more
next year since its more than the current contribuition cap.

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melrobb wrote:

- quote -

I don't have a citation, but I am almost sure that one can
only contribute cash to a Roth IRA. Property can only be
transferred into a Roth via a rollover.

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"melrobb" <melrobb[at]tampabay.rr.com> wrote:

- quote -

No. All IRA contributions must be cash. See IRS
Publication 590.

--
Phil Marti
Clarksburg, MD

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"melrobb" <melrobb[at]tampabay.rr.com> wrote

- quote -

No, you can ~not~ contribute stocks to an IRA (as part of
your deductible contribution).

- quote -

I bet he won't put the tax treatment in writing for you
either.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

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melrobb wrote:

- quote -

No, contributions are made in CASH, unless rolled over from
another Roth.

- quote -

You will have to sell the stock or mutual funds and deposit
the funds into the Roth IRA. Your custodian can repurchase
the same stock or funds with the cash in the IRA. You will
receive a 1099-B from the broker, showing the gross amount
of the sale. What the broker does to make the transfer may
not look like a sale, but it is a sale, nevertheless.

- quote -

Pub 590 should explain it for you.
BTW, the maximum contribution is $4,000 these days

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I have appreciated stock and stock mutual funds in Roth and
regular accounts. If I stay under the $2000 max
contribution, can I move something, other than cash, from a
regular account to my Roth IRA and declare it for my 2005
contribution? I asked my broker and they said just send them
a letter asking them to move whatever from one account to
another, but I am unclear as to the tax treatment. Would I
owe taxes on appreciation up to the contribution date? Or
are my gains still protected from tax since nothing has been
sold? There is nothing about this that I can find at
irs.gov. If anyone can help and cite a source, thank you,
because I have looked all over the internet.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >