<re: IRA Trading>
M Cahill, Yes, it's OK to short-term trade in and out of positions in your IRA, including intraday to your heart's content (staying within the IRA rules - no margin etc. per previous post). However, you have to be careful not to violate the buying-power rule, some brokers (Datek, Schwab seem to do well) enforce that better than others. With some web brokers (and even Schwab) you can exceed buying power (cash value of acct) if you don't watch it, then you'll get a call and have to deposit funds, which can really complicate things in a tax-deferred account. They may also punish you by restricting your trading activities in that account for a while. I don't think it's "illegal" per se, but it could cause you problems down the road, tax-wise... might want to consider a different broker, Schwab and Datek seem good for this (I've used Schwab, someone else posted positive experience with Datek).
Good trading, -Steve |
