Switching a regular fund account to an IRA?

I'm a latecomer to the whole investing scene. I had some extra money a few months ago and put it into a few funds. At the time, I really didn't research much into the whole capital gains/tax consequences. One of the funds happens to have a really high turnover rate (like 212%- it's a nat. resource fund), so I thought I would transfer that one to an IRA account. The others are pretty tax efficient.

Is transfering the fund into an IRA a taxable event? What am I being taxed on if so?

thanks

Yes its a taxable event. You have to cash out your non IRA account to fund the IRA. So you will be taxed on the gains thus far.

After these last couple of weeks, I don't think I'll have to worry about the gains...lol

I believe I'll go ahead and do it early next week. Thanks.

salem, keep in mind that you are still subject to the $4,000 per year limit on IRA contributions, plus a $1,000 "catch up" contribution per year if you're age 50 or older...

Traditional IRAs are tax-deductible and are taxable when withdrawn. Roth IRAs are not tax-deductible but are not taxed when withdrawn. Roth IRAs are the better option, in my opinion.