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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: Robert A. Green, CPA who wrote (3363)	3/12/1998 11:55:00 AM
From: Ira Player	Read Replies (2) \| Respond to of 12617

I have a further question for you regarding trader status. Some people have significant equity within tax deferred accounts. (IRA, 401(k), SEP-IRA, etc.) If going full time, the 401(k) would be transferred to an IRA. While investigating the idea of trading full time,(since postponed) I talked to several tax advisers about trader status and the impacts on the IRA accounts. "Most" had the opinion that electing trader status while continuing aggressive activity within the IRA account put the IRA's tax deferred status at substantial risk. The rules restrict operation of a trade or business within the IRA. Since you have elected trader status as your "business", extreme care must be taken (read that NO SHORT TERM TRADING) to ensure the IRA does not become invalid. Is this correct, in your opinion? If you do not believe it to be correct, why? Enjoy the ride, Ira