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QUESTION DETAIL
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If you fund your IRA with shares held in a non-retirement account such as a mutual fund, what impact will there be on the cost basis of those shares?
ANSWER
The BIDaWIZ Team's Answer:
You cannot in itself transfer mutual fund shares into an IRA. As per IRC Section 219(e)(1) and IRS Publication 590, you may only contribute cash into an IRA. If you wanted to contribute $1,000, you would have to sell those securities and there would be a realized event.
