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Yes, there is an intermediary involved, known as a trustee.
IRA futures account practices vary. The trustee Northstar restricts initial
account funding to 30% of total retirement assets, and holds back 30% of
that from the brokerage. I don't know what happens if one's brokerage
account grows or shrinks a lot. Refco implements the same restrictions as
Northstar, regardless of what trustee one uses; I am not sure about the
practices of other brokerages.
Millennium Trust holds back $500, from which fees are paid, and has no other
restrictions.
-----Original Message-----
From: Mark Johnson [mailto:janitor@xxxxxxxxxxxx]
Sent: Monday, March 03, 2003 3:39 PM
To: Charles Johnson
Subject: RE: Paying taxes on hedge fund "Model Account"
At least within the US, there is an intermediary who holds
back a hunk of your IRA money and forwards the rest to the
futures trading entity. This held-back portion is supposedly
to protect you from the unpredictable and erratic wild swings
of futures accounts. But really, it's a safety net to protect
the firm: it's held back in case you get a margin call and/or
get wiped out with negative final equity.
At 03:21 PM 3/3/2003 -0500, you wrote:
>You could open the model account in an IRA.
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