Taxable value for ROTH conversion | Ed Slott and Company, LLC

Taxable value for ROTH conversion

I discovered this forum last night and couldn't bookmark it fast enough. A quick 'thank you' to all for taking the time to pass along your knowledge and expertise. Now for my question which I assume most here know the answer to (I am just an ordinary Joe, not in the business): If a TIRA is converted to a ROTH today, and that TIRA is basically comprised of just some common shares of a company or two (publicly traded), is the value for tax purposes calculated using today's closing prices on the securities in the account or a year-end value or some other way? Thanks, Troy

Typically, the large investment outfits will require paperwork to convert stock (mutual funds can usually be done by phone/web). You are correct in stating that the closing price of the shares upon receipt will be used. I would be very surprised if somone allowed you to use any intra-day value..... pmk

Is there any authority for using the closing price for this purpose? In valuing securities for estate and gift taxes, the value is the mean between the high and the low prices that day (with special rules for prorating if the valuation date is a weekend or holiday, or if the stock did not trade that day).
 

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