Then IB is violating US law. You may find out that your IRA becomes invalidated along the way. This is not something IB is allowed to circumvent.
The law states you can't have trades with undefined risk. So it's a margin account with some limitations (ie. no short selling). But otherwise it acts like a margin acount. TOS has the same deal. you can even short puts as as they're cash covered.
I should clarify. At IB, you can do similar type of retirement account transfer. When I wanted to convert a rollover-IRA to a Roth-IRA, IB CSR told me that it just could not be done at IB and asked me to do it at another brokerage.
With IB, I can sell naked future put without enough cash to cover the possible loss. Is it a violation? If due to a black swan event, my loss is more than my account balance, what will happen? Who is responsible for the loss, IB or myself? I can't fund the IRA account. What will happen?
Futures margin is actually performance bond requirements. It does not involve money borrowing and it is legal to trade futures and futures options on IRA account. Your loss is your responsibility.
It can actually be done if you meet certain criteria. In 2010, it will be allowed even with less criteria according to the regulations. Almost all of my other brokers can do it.
I would assume if you do have a loss and your account is liquidated and you haven't enough cash in the account to cover the performance bond thus requiring a cash infusion into the IRA...it could result in an IRS nightmare?