What is the simplest method to transfer stocks from a taxable account to a Roth IRA? Some people have suggested withdrawing the funds from the taxable account and depositing into the Roth IRA. Can shares be transferred by visiting a Fidelity branch?
How to Transfer Stocks from a Taxable Account to an IRA?
Unfortunately, it is not possible for Fidelity customers to transfer stocks from a taxable brokerage account to a Roth IRA or any other retirement account.
The only option available is to sell the shares in your non-retirement account and contribute the cash proceeds to your Roth IRA account. You can then use that cash to invest in the same stock or ETF.
Things like cost basis and taxes need to be considered before applying this method.
A Roth IRA can only accept cash or check contributions. No other forms of deposits, such as stock shares or options, are allowed for a Roth IRA account.
💬 Community Discussion
Only cash can be deposited into a retirement account. To transfer stock to a Roth IRA, you must sell the stock, pay capital gains tax on the earnings, and then transfer the cash into the Roth account.
You should call Fidelity and have them ledger it into the right account depending on how long since the initial purchase. I’ve had them do it twice from TOD to IRA. You usually can’t go the opposite way.
I personally did this when moving from Robinhood to Fidelity, and it was acceptable for me as my cost basis was lower when I repurchased due to the market conditions at the time.
Another option is keeping the stock in a taxable account and contributing to your Roth IRA.
I decided to just open a Roth and start from scratch. I’ll just leave my brokerage account as is and let it appreciate since I don’t want to lose my starting positions. I’ve also decided to go 80% FSKAX and 20% FZILX for my Roth.