joetaxpayer wrote:
- quote -

Thanks to all who answered. I'll probably just leave that
cash in the IRA until my broker (Whom I've liked and trusted
for some 30 years now) comes up with something to buy with it.
I'll just purchase that Israel Bond with cash and stick it
in our safety deposit box.

Jeff

--
Jeffry Wisnia
(W1BSV + Brass Rat '57 EE)
The speed of light is 1.98*10^14 fathoms per fortnight.

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Jeff Wisnia wrote:

- quote -

No. When I first started IRAing a long time ago, I asked if
I could pay the stock commission separately to fund the full
$2000 into the IRA. I was told 'no'. So I asked if I could
buy the stock outside the IRA and 'deposit' stock instead of
cash. A louder 'no'.

As I understand it, you may take a distribution as you wish.
Stock removed from the IRA is distributed. Or you can
convert shares from the IRA to the Roth IRA. But the deposit
to the IRA must be cash.

JOE

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Jeff Wisnia wrote:

- quote -

Your annual contribution to an IRA must be in cash.

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Jeff Wisnia <jwisnia[at]conversent.net> wrote:

- quote -

I thought the State of Israel Bond people will open an IRA
account for you and allow you to purchase a bond to be held
in that IRA.

If this is correct, then take a cash distribution of your
just-matured bond, and you have 60 days to Roll it over to
an IRA administered by the SofI IRA custodian.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"Jeff Wisnia" <jwisnia[at]conversent.net> wrote

- quote -

No. IRA contributions are to be made in cash or check. You
can not contribute stock, bonds or any other asset to an
IRA.

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

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"Jeff Wisnia" <jwisnia[at]conversent.net> wrote:

- quote -

[remainder snipped]

No. All contributions must be cash. The only time you can
transfer a non-cash asset into an IRA is when it comes from
another retirement account.

Ira Smilovitz

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"Jeff Wisnia" <jwisnia[at]conversent.net> wrote:

- quote -

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

- quote -

The best I can suggest is shopping for a different IRA
custodian with fees more to your liking.

There is often a disadvantage to holding foreign-based
investments in an IRA. If you are paying any Israeli tax on
the income from this bond you do not get to take the US
foreign tax credit as you would if you held it in a regular
taxable investment account.

--
Phil Marti
Clarksburg, MD

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Will the IRS accept as a valid IRA "contribution" my
purchasing a State of Israel bond in my name from their
agent (Bank of America) and then transfering that bond to my
IRA, held by a brokerage firm?

I'm asking because I had such a bond in my IRA brokerage
account and it matured last month. I asked my broker to use
the proceeds to purchase another $4,500 State of Israel Bond
for that account. He came back sheepishly apologetic and
told me that he could, but his firm insisted on charging me
a $150 fee for handling the purchase. That struck us both as
a bit chintzy.

The brokerage firm makes no charge for transfers into an IRA
account. I was planning on making a cash contribution of
$4500 to the IRA this year, and that got me thinking about
accomplishing my mission and avoiding that $150 fee by
purchasing the bond myself (No fee required for that.) and
transfering it into my IRA account as my contribution for
this year contribution.

Thanks guys,

Jeff

--
Jeffry Wisnia
(W1BSV + Brass Rat '57 EE)
The speed of light is 1.8*10^12 furlongs per fortnight.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >