I have an autotrade system that's doing well and I'm thinking about moving my Roth IRA to IB, hacking up some code and routing some of the trades through it in order to save on taxes. Has anyone done anything similar? I seem to remember an IRS directive that said at some point too many trades in an IRA would make it taxable but I can't find any references on Google. This is my biggest concern. IRAs are cash accounts so I think I'd only be able to trade 1/3 of my account value/day (since I'd have to wait t+3 for it to settle.) This will put a pretty big constraint on how many trades I can do but I might still be able to get in 2-3 trades/day on a 25k account. I can probably double the account in a year and then it will be 4-6 trades/day (All the trades will be intraday) Does anyone have any experience with this?
Go to the IB website and read the details of their IRA accounts. IB has a margin type IRA account that allows you to day trade equities with more than $25,000 (PDT rules still apply when under $25,000). There are many people who actively trade in IRA accounts and I have yet to find a single example of the IRS going after anyone for trading in their IRA.