| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 947.1 | No such known loopholes in self-directed IRA's | 2155::michaud | Jeff Michaud - ObjectBroker | Tue Nov 28 1995 20:43 | 33 |
| > I would like to minimize the fees I pay with my IRA funds and wonder if
> there is some way to pay commissions with non-IRA money.
Not legally that I know of (I already looked into this, but
if you do find something out let us know).
> I have tried the direct
> approach and asked that the commissions be billed separately but my
> broker (J. White) has refused.
Because it's not legal.
> I have asked about buying the stock in
> my non-IRA account and transferring it directly to the IRA (subject to
> the $2000 annual limit) avoiding round-trip commissions. Again, no-dice.
I asked the same thing. Again, IRS regulations.
> Has anyone done anything like this? I spoke to Fidelity's brokerage
> and they told me that it wouldn't be a problem. When I called back
> to verify this, the second rep told me that the first rep was wrong.
The first rep. was wrong, and they should fire the 1st rep.
> Does anyone know if this is legal?
Yes I know. The answer is it's not legal.
> Does anyone know of a brokerage that would allow this?
If they do, they either are the only one that knows of a
loophole in the law, or are doing it illegally and it
will come back and bite you.
|
| 947.2 | | PADC::KOLLING | Karen | Wed Nov 29 1995 13:37 | 3 |
| I looked into this with my Schwab accounts awhile back, and
was told no dice.
|
| 947.3 | | NPSS::WADE | Network Systems Support | Tue Dec 19 1995 12:27 | 9 |
| I have some forms from ETRADE (discount broker - $19.95 per trade up to
5000 shares) for setting up an IRA account. My plan was to roll over an
existing IRA account that I have from a previous employer into an ETRADE
IRA. I'd like to put this money to work and buy individual stocks.
But this note string has me thinking. Is this legal?
Bill
|
| 947.4 | | GUIDUK::ONO | The Wrong Stuff | Tue Dec 19 1995 13:27 | 5 |
| Read the previous notes carefully. The gist is that the brokerage
IRA is legal, but that brokerage fees must be paid from the IRA
assets, and cannot be billed separately.
Wes
|
| 947.5 | Tain't necessarily so... | SMURF::SCHLOSS | | Thu Dec 21 1995 13:31 | 8 |
| Remember that a lot of the stuff that you read here is opinion and
not necessarily 100% true. I spoke to an accountant about this and
he told me that there is nothing in the regs to prevent this, you
just have to find a cooperative broker. Unfortunately, in his opinion,
I will never be able to find one as it wouldn't be worth enough $$$
for a broker to provide this service.
Mike
|
| 947.6 | | PADC::KOLLING | Karen | Thu Dec 21 1995 13:43 | 10 |
| Re: no broker will provide this service.
Bafflement. I have a $4K IRA at Schwab. It's annual maintenance fee
free, since I also have a regular account with a tidy sum in it (they
don't advertise that they will drop the IRA maintenance fee under those
circumstances, but my branch manager did when I asked). Otherwise, I
think they charge abour $20 a year for IRAs under something like $10K,
and you can trade in the account as you like, subject to transaction
fees, of course.
|
| 947.7 | | 2155::michaud | Jeff Michaud - ObjectBroker | Thu Dec 21 1995 17:49 | 17 |
| Re: .6 (Karen)
Me thinks you mis-read one of the notes. The discussion is
about "brokerage fees" (ie. commisions) having to be paid
by IRA funds. "maint. fees" are quite different, and indeed
most that charge them will give you a chance to pay for it out
of pocket before the due date on which they will otherwise
automatically deduct the fee from your IRA account.
Re: .5
> Remember that a lot of the stuff that you read here is opinion and
> not necessarily 100% true. I spoke to an accountant about this and
> he told me that there is nothing in the regs to prevent this, you
> just have to find a cooperative broker.
And remember that an accountant isn't God (ala the almighty "IRS")
either.....
|