I'm not sure of exactly what part of their company you looked into, but the self direced IRA accounts have always been flat rate, as long as I could remember....I know the trusts are a little different, but I know they aren't outrageous either. Like I said, the only reason why I'm saying anything is because I'm speaking from experience with them....and by the way I'm not suggesting that you don't have a good idea or anything. Personally I know alot of people trying to make sure they are taking advantage of every loophole available to them. So I can definetely understand your reasoning behind what you are talking about without me even looking at the post you made. Although if the poster just wants to rollover some money into a leveraged FX dealer then that's the fastest way possible in my opinion.
Hi Guys, One custodian that allows the IRA LLC is Schwab, their fees certainly don't run into the thousands, think the highest it can go is $50/year, if you have a high enough balance it is free. All you do is move the IRA to Schwab as custodian. From there you can then move the money to the investment of your choice. Other custodians are TASC, trustlynk.com Sterling Trust, and Fiserv. As for margin being a no no in IRAs, yes and no. It is allowed, but the income generated by the debt will be subject to taxes. If done correctly this can be overcome fairly easily though.
I would like a Schwab IRA-LLC link as well. The only mention of "IRA LLC" in a Schwab Web site search is the following link for a SEP-IRA http://www.schwab.com/public/schwab/home/account_types/small_business_retirement/sep/forms.html I don't think this is the account type you want! "LLC" has more links, but I haven't found the IRA account type
Are you saying that if cash secured puts or credit spreads are sold inside an IRA, that the IRA owner will get a 1099 at year end? Or are you referring to income being subject to taxes if withdrawn after age 59 1/2? I wouldn't think the rules are any different for equities or futures traded inside an IRA.
IRA's are generally not allowed to borrow from my previous research. Margin Accounts is a form of borrowing. Least that is what my previous research led me to believe. If I get time, I'll see if I can find the reference again. I could be mistaken.
Been in contact with schwab about this. It's true. They have a thing called alternative investments. It's a little more price to set up than the company that I previously found. They charge 250 to set up. With aditional $50 some where for set up. $100 Anual maint. $100 each time you want to invest more money into your LLC. Give them a call and ask for Alternatative Investments for IRA's
Under section 408 of the code, it says that if the IRA owner uses the account as security for a loan then the amount pledged will be a taxable distribution. However that applies in the situation of the IRA owner pledging the assets, not the IRA itself pledging the assets. Its a fine hair distinction, but a distinction none the less. Need verification? Do a search on google for IRA borrow money ubit, then sit back and get ready to do a lot of reading. As for the question on the taxation of the options, options are equity investments, not debt. Therefore the debt financed income rules don't come into play with options -- unless they were financed with debt. Additionally, if you sell short, even though you do it in a margin account, the IRS has said that does not generate the debt financed income as well. There are all sorts of great ways to use your IRAs (better yet, Roth IRAs, even better than that, the new Roth 401ks) to build up tax free wealth.
This is just why I said to go call millenium...I knew it was something just like how TaxGuy is describing.That self directed IRA thing falls under alternative investments...Like I said before I never had a problem with trading IRA money, nore were the owner's funds ever taxed...