I am getting ready to make my annual contribution to my Roth.
If I choose to have my brokerage firm (e.g. Fidelity) transfer $X worth of a given mutual fund from my regular account to my Roth account at the same brokerage do I create a capital gain or loss.
(I know that if I sold the $X in my regular account and then transfer the cash it creates a capital gain
Thanks
What you propose is not permitted.
You can convert to Roth from IRA without liquidating, but new IRAs, Roth or traditional must be funded with cash.
Joe
To clarify what Joe meant to say: annual contributions to any form of IRA must be in cash. New accounts may be created in a variety of different ways.
Yes, because the amount transferred must be in cash, so it has to be sold from the regular account, and bought in the Roth account.
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