Can I transfer Securitys from my Scottrade account to my Shwab ROTH IRA ?


Question:
I can contribute $5000.00 this year ,stocks are worth about $2500.00, Cost basis is about $3200.00. I have had them for over 2 years. The account they are in now is NOT an IRA.

Answer:
Only if those stocks are also offered in Scottrade, then you can tranfer into a Roth IRA. Though, I wouldn't recommend that you fund an IRA with stocks since they are highly volatile. You can make lots of money off of stocks but you can also lose lots of money. For example, if a price of a stock was $50 and then it grew to $100 and then something happens to the market, it drops to $2, how are you going to feel? If the company goes bankrupt or was banned from continuing doing business, your stocks will be worth nothing!

Stick with mutual funds and bonds. Keep stocks outside of the IRA so that you can sell them at anytime. You are already losing money on the stock, so it's best to liquidate them now since whatever you are doing, its not working.
consult a financial advisor at one of the brokerage firms to find out. There may be tax issues doing this.
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