4 ms·
> Use IRA cash to buy stock options from someone who holds those options (e.g. yourself) Non-arms-length transactions, which includes you selling something to
by nrmitchi 5y ago
> Use IRA cash to buy stock options from someone who holds those options (e.g. yourself)
Non-arms-length transactions, which includes you selling something to "yourself", are prohibited transactions with respect to IRAs (for pretty obvious reasons).
- sakopov 5y agoWanted to add to this that there is very little that would stop IRS from taking IRA status off your account (unless you're Peter Thiel) and forcing you to sell all assets and pay capital gains if you committed a prohibited transaction. An example of such IRA violation that's fairly common is buying rental property with IRA and utilizing it for personal use.
- fennecfoxen 5y agoOh, I'd believe it! In that case even fairly valued options would be a no-go; you'd have to buy them from someone else: probably tricky, doubly so for incentive options, and it sounds like buying publicly traded stock has a major advantage here.