I am looking to move my ROTH accounts to velocity as well. Are there other options available? Thanks!
Trading futures, options, forex or stocks in your roth IRA is all the same. You could hold any of these trading vehicles intra-day or for years. You have to rollover the options and the futures, ok. So Berkshire Hathaway who invests for the long term is according to this thread not a business? How can the IRS say anything about trading frequency making trading in an IRA a business? Business have all kinds of time frames. That is not the definition of a business. The IRS has made a disctinction between investing and business in the sense that it takes full time effort to be qualified as a trader in business. But even then they have disallowed some who even had their own research staffs and worked at it all day. Just by definition an IRA is a retirement plan, not a business. So if you can trade in your retirement plan and make money for your retirement that is what it is set up for. If you do it by trading five times a day in a stock or an option or a futures contract, or if you use the same trading vehicles, to trade once a week, or just once a month or every six months it is not the timeframe that makes you a business or not a business. Businesses or investment companies such as Buffet's buy and sell long term and sometimes short term. It is not the timeframe that makes them a business or an investor, it is the legally organized structure that defines the purpose of the entity. An entiity organized as an LLC or C corp is a business subject to quarterly tax payemtns. A Roth IRA is a legally formed "entity" under a plan that is not subject to quarterly tax payments. The time frame cannot / should not change that. Of course the IRS in it's haste to close the budget deficits so carelessly created by our elected "leaders" (whether rep or dem does not matter) will of course invoke anything they can think of to mess with a pot of gold ripe for the picking. That unfortunately is the reality. But then again, if you made 10 million in your IRA go and pick a good fight with them boys. Good thing I am one of the 90% who have lost in trading.
It's been almost two years since this was last discussed. With the ability to now convert a traditional IRA or 401k to a Roth IRA without restrictions, daytrading futures out of a Roth IRA seems like a slam dunk. I'm thinking of converting my current tax deferred 401k to a Roth, and pay the taxes out of my checking account. I wont be able to touch the earnings for a few decades, but the compounding advantages are mind boggling with a profitable trading system. In the past two years has anyone come across any issues with the IRS concerning this? I can't find any mention of anyone getting a penalty for doing this elsewhere on the internet.