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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (70)	2/19/1998 3:05:00 AM
From: Ilya k.	Read Replies (1) \| Respond to of 1383

Read an interesting article in a legal pub. while everyone seems to be jumping on the band wagon for the Roth IRA from an investment perspective, from an asset protection standpoint, there appears to be a point of view that Roth IRAs are not protected from creditors, as are regular IRAs in most states (a la O. J.) Of course, no one in this thread would ever have such problems. But you might have a friend who might. So stop, take a deep breath before making your decision on a Roth vs. normal IRA.

To: Colin Cody who wrote (70)	2/19/1998 10:27:00 AM
From: Dan Duchardt	Respond to of 1383

Re: IRAs and trading Just passing along some information I picked up from a trading house. I claim no expertise. Some of this may be driven by their own rules, rather than the IRS. IRA assets cannot be used to secure debt- hence no margin, no short sales. (You can borrow from your own IRA once per year for a period of not more than 60 days. I don't know if that restricts the activity within the IRA in any way.) In addition, unlike a trading account, security purchases are limited to the net value of the account on a daily basis. If your IRA is worth $100K as of last market close, today you can buy up to $100K of securities, and no more, even if you sell what you buy the same day. So you cannot do the same multiple buying and selling activity you can with a daytrading account. Anyone with first hand knowledge care to comment? I see there are a couple of Roth IRA threads. Will check them out. Subject 18171 Subject 18171 Dan