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Roth IRA contribution types


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Posted

I have about $1500 in a stock portfolio. Can I use these stocks to start a Roth IRA? I also have a small bond portfolio. Can these be used as well? It would seem a waste to me to sell a portfolio, incur taxes, and then fund a Roth.

Posted

No. Roths must be funded with cash. If the stocks or bonds are in an existing IRA, then these assets can be converted to a Roth.

You don't have to sell either the stocks or bonds if you have cash to fund an Roth. Short on cash? Then consider a monthly auto deposit program to fund the Roth over the year.

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