If I deposit stock into my IRA account how will the IRS treat the
deposit?  Will it be cost basis?? Or will it be market value at time
of deposit??  Please site the IRS code.  Thanks!

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Clarification of Question by jkm1317-ga on 18 Feb 2005 00:19 PST

??

jkm1317 --

I think that the reason your question has not been answered is that
its premise may be faulty.  It seems that IRA contributions must be in
cash (although securities can be purchased with them after the
contributions are in the account)  Here is the way one financial
institution's website puts it:

"You can also make annual current year IRA contributions by
exchanging cash from your NFS non-retirement account to your
Premiere Select Traditional IRA or Premiere Select Roth IRA. Annual
contributions can only be made in cash and cannot be done in-kind
(through the exchange of securities)."

FISN: IRA Application Kit
http://www.fisnonline.com/forms/ira/New%20IRA%20forms/IRA%20Kit%201-05/IRA%20Ap%20Instructions%201-05.pdf


Here's another source:

"Transferring Stock to an IRA

"Can I fund an IRA brokerage account by transferring shares of stock
from another account?

"Technically, no. The tax jargon says that you're not supposed to make
an IRA contribution "in-kind." That just means you've got to sell the
stock first and then send the proceeds to your IRA.

"But that doesn't mean an IRA custodian out there won't accept your
shares anyway. Check with your bank, brokerage or mutual fund firm.
Like anything else, you never know until you ask."

TheStreet.com: Protecting Your IRAs From Bankruptcy, By Tracy Byrnes, 9/25/99
http://www.thestreet.com/funds/taxforum/786809.html