Funding IB Friends & Family account with IRA?

Discussion in 'Retail Brokers' started by trader99, Jun 8, 2009.

  1. trader99

    trader99

    Hi IB Reps and others,

    I'm thinking of opening an IB Friends and Family account. Is it possible to fund this account with a personal IRA account that I already have at IB? And if so, would the profits I made using my personal IRA account be able to be withdrawn without tax penalty?

    how does that work? Note: I have an IB IRA account as well as IB normal taxable account.

    thanks!

    99
     
  2. yes you can fund a f&f account with an ira. no you can not withdraw the profits without penalty.
     
  3. trader99

    trader99

    Hmm. Interesting. But how about the profits I get from other people who put money in the f&f with TAXABLE dollars? Or would they have to fund it with IRA/nontaxable dollars as well?

    just curious,

    99
     
  4. you can have both types of accounts under your master account.
     
  5. trader99

    trader99

    So people can fund both taxable and nontaxable under my master f&f account?

    But my mgmt fees that I'll charge them will be for performance of the master account which has BOTH taxable and nontaxable subaccounts.

    So, i can withdraw the fees I made on the taxable subaccount without penalty but can't do that for the nontaxable subaccount?

    thanks. hmm..

    99
     
  6. trader99

    trader99

    vhehn et al,

    what I meant was can I fund the master account under f&f with my personal IRA?
    I know the accounts under the master account can be funded with IRA. I was just wondering if the MASTER account for f&f can be funded using IRA? It's not clear from IB website.

    IB reps - can you please answer this one as well?

    thnx!

    99
     
  7. jsmith

    jsmith

    IRAs does not allow margin so shorting is not allowed. I wonder how it is handled under the IB Friends and Family account.

    If you short stocks in the master account, can the gains/losses be distributed to an IRA subaccount?

    Thanks!
     
  8. no