Q  I own mutual fund shares that have appreciated slightly since I bought them a few years ago. Can I transfer these securities to a Roth IRA?

A  No. Contributions to any IRA, whether it’s a traditional IRA or a Roth IRA, must be made in cash. So, you can’t transfer the mutual fund shares, but the tax prognosis may not be as grim as it first appears. You indicated that the appreciation is only slight and part of the taxable capital gain may qualify for the 0% tax rate if you sell the shares. At worst, long-term capital gain is taxed at a maximum 15% tax rate.

Tip: You can transfer securities as part of a rollover from a qualified retirement plan or a traditional IRA to a Roth IRA.