Transferring Mutual Fund to Roth IRA

[Guest oldman74]

I have a mutual fund in a joint taxable account and would like to transfer it to my Roth IRA. I can contribute $6000 this year and the mutual fund has a $4000 value. Can I do this and I assume the value of the fund would be what its worth when I transfer it. Correct? That would allow me to add an additional $2000 to the Roth.

[John G]

No, you can not. Contributions to an IRA or Roth must be made in cash.

The only transfers in kind that you can make are when you do a Roth conversion, which according to your post does not apply to your situation.

[JanetM]

You would have to sell the shares and contribute cash. You could then contribute additional cash up to the $6,000 limit.