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How about making an entity, which will borrow money from the IRA to trade. The
entity will then pay back the amount plus interest to IRA. It may also pay back a
percentage of the gains. Then the entity will take deductions, IRA will keep the
income which will be tax deferred.
This will be a perfectly legal transection. No brokerage company can stop the
entity from trading, and IRA is totally free to lend money to the entity as a
loan.
Girish Patel, M.D.
OkieDame wrote:
> Proffittak writes:
> it is illigall to do even what fidelity allows
>
> the irs publication only allows selling covered calls
> if you do more it is TAXABLE INCOME THAT YEAR!!!!!
>
> Not having seen the post to which you are responding, I can only assume you
> are commenting on the use of options in an IRA...i.e., only being able to
> write covered calls.
>
> If that is a correct assumption, I would respectfully disagree. IRA option
> limitations are imposed by brokerage houses...NOT the IRS. There are no rules
> or regulations limiting activity to covered calls...in fact, there ARE a
> handful of brokerages that allow other option actiivity...it is NOT against
> the law,,,certainly not the IRS law. Your comment that any "profit beyond a
> covered call is taxable" is patentedly absurd...the idea of an IRA is
> sheltered income/profit, which, as we all know, is not taxable until withdrawn
> from the IRA.
>
> I don't say these things to be contentious~~ only to set the often-mistaken
> record straight. Quote your rules and regs if you disagree.
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