I do not think so.

[PATAX]

Client has two accounts with same brokerage house, online accounts I believe. One is a retirement IRA account and the other is a regular account. The client asked me this question: Can he transfer actual stock from the regular account into his retirement IRA account, in order to make his annual contribution and deduct it? I told him no, I don't think so. I would think this transaction would raise a multitude of problems,  if they would allow this transaction, including what would the stock be valued at, fair market value or cost basis? And what about the unrealized capital gain, how would that be dealt with? I don't think he can do that, but what do you all think. Thanks.

[IRonMaN · Accepted solution]

I'm thinking that your thinking is correct.  That would be a good way to avoid capital gains on appreciated stock if someone could play that game.

[Jim-from-Ohio]

Schwab would make them sell the security in his brokerage account, then make the contribution, transferring cash to the IRA. 

[BobKamman]

But it can go the other way.  IRA distributions can be made in kind, not in cash.  Back when commissions were a significant factor in broker transactions, that was nice to know.  Now, for most people, it doesn't really matter.  Amount of distribution is market value at date of distribution, and that's the basis in the regular account.  

[qbteachmt]

Rollovers and transfers can be in-kind, as well. Just not contributions.

[Taxes-by-Rocky]

You might just ask if it is a self-directed IRA.  However, that may bring up 'prohibited transaction' rules for tax-exempts, not sure.  I doubt the tax and economics would be any different.