Sell stocks held in taxable to max out Roth IRA?

[Mercutio]

I have ~$1000 worth of dividend paying stocks (mainly MCD and T) in a Sharebuilder account that I purchased a few years ago and I'm wondering if I should sell that and move it into my Roth IRA (not yet maxed out for fiscal year).

I feel that I should do this since I haven't maxed out my Roth IRA, any arguments why I shouldn't?

Thanks.

[chucklesmcgee]

Generally I think it's a good idea. It might not be the best if you plan on retiring very early or think you might need that money for an emergency.

[icefr]

To add to chuckles's point: I would also calculate how much you would have to pay on taxes by selling the stocks. Would they be long or short term capital gains? How much have they gone up in value?

[the fixer]

Do it! You can always withdraw the money later if you really need it before 59.5, but you cannot catch back up on contributions later.

The only conceivable reason not to sell is if you're worried about capital gains taxes. For instance, if you have a large unrealized gain, no offsetting capital losses, and your tax bracket will go way down next year, you could save in taxes by selling next year. But that's a pretty special situation.

[Done by Forty]

Agreed with the above.  I think you should try to move the money and, to the degree possible, avoid capital gains in the process.  If you have some funds currently at a loss to offset, and/or if you are possibly within the 15% marginal bracket (or you might be in the future due to a job change or marriage), that'd be a good time to make the move.

[Mercutio]

Thanks for the feedback. It reinforces my rationale. I'll liquidate the taxable account and reallocate those funds to my Roth.