Contributing to an IRA with a bond?

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

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

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

"Jeff Wisnia" wrote

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 snipped-for-privacy@bellsouth.net

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 @ AOL.com Columbus OH K2PZH

Your annual contribution to an IRA must be in cash.

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

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