Roth IRA and Self-Dealing

[Guest TCD1]

Is it permitted to sell a stock at a gain from my taxable account and buy it in my Roth IRA? Its not a wash sale, as there is a gain. I would conduct the trade on the NYSE or NASDAQ. The sell and buy shares may be the same as the stock is thinly traded, but then again they may be different. However, the price would be a market price. I do not want this transaction considered self dealing. I believe this is discussed in USC Sec. 4975.

[Mike Preston]

How about allowing the sale to close before opening the buy order?

[Guest TCD1]

How about allowing the sale to close before opening the buy order?

I could allow the sale to close prior to entering a buy order. However, is this necessary or allowable? Are there any IRS sources that discuss the topic?

[masteff]

What you describe appears to qualify as an exception described in 4975(d)(19). You're doing it thru an exchange; based on how I read (d)(19), you're fine.

[Guest TCD1]

What you describe appears to qualify as an exception described in 4975(d)(19). You're doing it thru an exchange; based on how I read (d)(19), you're fine.

Good catch. I'm not sure in section (e)(2) disqualified person where it includes the taxpayer, but it must. Also, (d)(19)(E) states written or electronic notice to the plan fiduciary. Not sure how this would work.