Quick contribution, conversion, rollover

Discussion in 'Professional Trading' started by Toonces, Sep 30, 2006.

  1. Toonces


    My goal is to get funds quickly into a Roth IRA at IB (or another daytrading firm.) So the quickest way would be to set up a Roth mini 401(K), since you can take the first $15K of earnings and put it directly in. Then I would immediately convert it to a Roth IRA, then immediately roll the funds into IB so I can trade it.

    I don't see any other way to quickly get money into a Roth IRA at IB. I can't set up a SEP IRA because you can only contribute 20%, unlinke the 401(K) which allows you to contribute the first $15K. I have to contribute to another firm first, because IB (and every other daytrading firm on the planet) allows only IRAs, not 401(K)s. I can't simply contribute to a Roth IRA, because I'm limited to $4K.

    Here's the problem I foresee. Will the firm I set my account up with give me a hard time about this? First I'm immediately converting my mini 401(K) to a mini IRA; then I'm immediately rolling it over to another firm. Has anyone done anything like this? Were there any problems?