PDT in IRA cash account <25k

I searched this thread and IB's website and still have not found the answer.

I recently opened an IRA Margin Account with IBKR LITE and just downgraded it to a Cash Account. With an IB IRA Cash Account under 25k, can I day trade as often as I like? Generally the PDT rule doesn't apply to cash accounts under 25k but is it different with an IRA or with IB/IB Lite? (I'm aware of the T+2 settlement.)

Because, in the process of downgrading, the support ticket said, even in an IRA cash account under 25k, I'm still subject to the PDT rule. What's true? Thanks.

 

No, that 25K PDT rule is industry regulation.

 

Thanks. Even with a non-retirement account, you can't day trade as often as you like in a Cash Account <25k?

 

https://finance.zacks.com/rules-trading-stocks-ira-account-4427.html

No Free Riding
A stock trade takes three business days to become official, or "settle." When you sell stock, the cash is not officially in your account until the settlement date three days later. You can buy stock with unsettled cash, but if you sell that stock before the original trade settles, you are guilty of violating the Federal Reserve Board's Regulation T, commonly called free riding, on the cash that is not yet yours.

Free riding is not allowed in cash or IRA accounts. The result of the free riding rule is that you cannot effectively trade short-term – less than three-day holding period – in an IRA account.

Additionally if you think you see a loophole, it probably can't be done. That's where the REAL money is made.

 

Thanks.

 

With cash you can buy as much as your cash allows you.
Whether it be 1-100+ trades as long as you have “settled” cash to buy.

 

That's what I thought but got conflicting info from IB and other sources.. So the answer to my first question in my original post is Yes? EDIT: (As long as settled cash is available to trade.)

 

Yes. Just beware of unsettled funds that can get you into good faith or free riding violations.
and maybe commission depending on your broker.

and easy way is to call your broker and ask to restrict your account to cash account to avoid using funds till they are settled and ready to trade if you are worried.

 

Thanks. I have a IRA cash account now. With a cash account, are unsettled funds included in your portfolio balance?

EDIT: Stupid question--- of course they are! Now I understand what you're saying.

 

Why would you downgrade your ira margin account to a IRA cash account ? All it means is you can daytrade your IRA account all day long . It doesn’t mean you get any margin .