Why would Millennium Trust allow you to invest in futures with a margin account if it's against IRS rules? Eventually the IRS will catch their customers then shut them or that particular service down.
I think the difference is that the IRA account isn't margined. The IRA account makes an investment in the sub account which has the ability to margin. It's an entity issue. If you were to open an IRA account and gain margin authorization, then you may get the ruler on the knuckles....... ouch!!!!!! Aren't people in IRA's invested in mutual funds that have the ability to margin or go short? The only difference is the entity which is going short or margined. Later, Cracked
I just did the similar transaction, Mil Trust don't even keep the last $500. Other trust beside Mil Trust http://www.lincolntrust.com/ http://www.entrustadmin.com/ found post on trading in IRA...thank Jessie ------ As to the question of margin being illegal in an IRA, while this is true with equities, it is NOT true with futures or with options on futures. Margin on futures is not borrowed money as with equities, so it does not represent a "debt", rather it is a performance bond, so the rules are different. It is quite easy to set up a futures IRA that will let you trade in any manner you wish. Just contact any one of the trust co's that provide the "umbrella", then open an account with any FCM you wish and trade. Millenium is probably the best known for this kind of IRA, and Lincoln Trust, and Entrust also come to mind as a result of my own experiences, but there are lots of others. Most of the trusts have rules stating that only 50% of cash on deposit as margin can be used, and when the account gets to that level trading will cease, thus there is very little likelihood that the account will go into debit. Trust me, you CAN trade naked calls & puts in an IRA, I do it regularly, as do thousands of other commodity traders. Good Trading! Jessie
For stocks - be careful not to break the free-riding rules - easy to do in a cash account without the cushion margin provides. Smitty
Does your IRA have its own tax id number? When you fill out the account forms, what do you put into the tax id number blank? Your personal social security number? If you put in your soc. sec. number, then when the IRS gets the 1099s, won't they be looking for the amounts to be reported on your taxes?
IRA account custodian is not required to report anything, there is form 80?? single page you suppose to fill out yourself each year. simply put it is all up to you.
I sent in the forms with my SSAN and signature to prove suitability. Then, the trust sent in the same forms with their TAX ID and them as custodian for my IRA.