I need to fund my IRA but I don't have enough cash. Can I move some mutual funds into my IRA account?
Funding IRA
Mar 28, 2007
5 Replies
You can only fund an IRA with cash, but you can sell some of your mutual funds and use the proceeds to fund the IRA.
Dave
This year you can direct a refund, if any, go into an IRA.
That's what I am trying to avoid, having to sell stocks or mutual funds. But so be it.
Only cash may be deposited to an IRA. (A Roth conversion may be stock moved from a standard IRA to the Roth, but that's another situation).
You can set up the IRA, and request the Mutual fund be sold, cash transfered, and bought in the IRA, the time you're out of the fund shouldn't be more than a couple days.
The only problem is the cap gains tax I'd have to pay. I guess that's why I can't just move the MF into an IRA. So be it.
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