Question I have a few shares of alcoa stock... I would like to take my ira allowable contribution using my stock... how do I do this...my stock is in a drip fund so do I need to cash it out then reinvest or can I just transfer it to an ira account. I also do not want to hire a broker per se
can I use etrade or one of the one line banking stock firms to do this
I am a novice to investing....
thanking you in advance...
Answer Dorothea,
IRA contributions need to be in cash, so you'll either need to sell that stock or find another source of funds. Keep in mind that if you sell stock, including stock in a DRIP, the sale must be reported on your tax return so you may end up owing taxes on that sale (depending on whether the DRIP shares have gained or lost money).
