How To Transfer Stocks From a Taxable Account to a Roth IRA?

Someone asks:

What’s the easiest way to transfer stocks from a taxable account to a Roth IRA? I know people have said to withdraw the money from the taxable account and put it into the Roth but if I go to a Fidelity branch could they transfer those shares?

How do I Move Shares From a Taxable Account to an IRA?

Unfortunately, Fidelity does not allow its customers to transfer stocks from their taxable brokerage account to their Roth IRA (or any other retirement accounts).

The only possible option is to sell the shares from your non-retirement account and contribute the cash to your Roth IRA account. Then, you can use that cash to invest in the same stock that you wanted to transfer over. Of course, things like cost basis and taxes need to be considered before applying this method.

Your Roth IRA can only accept cash or a check. Monetary contributions are allowed. Other than that, a Roth IRA account can not take a deposit of stock shares or options.

Other comments

Ian S:

As I understand it, you cannot transfer shares into a Roth IRA, only cash. You’d have to sell the AAPL shares and buy them in your Roth, but you would, of course, be taxed.

Austin L:

You can only put cash into a retirement account. You’ll have to sell the stock, pay capital gains on the earnings, and transfer the money into the Roth account.

Matt C:

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.

Victor O:

You have to sell and repurchase in a Roth. I did that for mine when I went from Robinhood to Fidelity, but I was okay with it because my cost basis was lower when I repurchased based on the market at the time. Or just leave it in a taxable and start contributing to a Roth.

Blanca C:

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.