[core]

LC's site says that Folio trading is not allowed in an IRA.  But that snippet didn't appear until some time last year as I recall, and I haven't heard a peep about this from anyone here.  I know you can't open a Folio-only IRA if you live in one of "those" states, but I'm just talking about being able to liquidate notes in a regular LC IRA account if the need arises.

Is this restriction true?  Was this always the case, or is this relatively new?  Can anyone with an IRA confirm that it absolutely won't let you sell a note?  Is anyone grandfathered in?

[edward]

I have a traditional IRA, opened in January 2013, and I buy and sell on Folio all the time. I live in a state that allows investors in both new LC and Folio notes, in case that makes a difference.

[yojoakak]

from: core on October 13, 2013, 07:21:44 PM

[thezinfan]

I trade in my IRA account all the time on Folio.

[TravelingPennies]

from: yojoakak on October 14, 2013, 10:02:37 AM

[TravelingPennies]

I opened my IRA's in Feb 2012. Activated folio on those accounts immediately.

[TravelingPennies]

I'm glad some of you have had luck getting in.  So there is still hope.

It sure would be unfortunate to turn 59-1/2 thinking you were going to retire comfortably cruising your brand new luxury yacht around San Francisco bay, only to find out that they're going to lock your account the second you try to withdraw anything because you didn't adhere to the posted rules.

And before anyone says I'm being overly paranoid, well which is worse:  Blatantly disregarding a very clearly worded rule, or doing something like using automated tools which isn't even expressly forbidden anywhere?  As Rev can attest to, they feel perfectly justified in blocking your IP whenever they feel like it.  I don't think it's too much of a stretch for them to point to their policy in this case and say you were in violation.

This business of making up the rules depending on the phase of the moon is getting a little old.

[DanB]

from: core on October 14, 2013, 03:11:13 PM

[TravelingPennies]

from: DanB on October 14, 2013, 03:51:46 PM

[cnmor54]

I am siding with you Core

(oh no ... i took a wrong turn in sesame street land)

banks change their rules all the time.

[TravelingPennies]

from: cnmor54 on October 14, 2013, 04:24:00 PM

[thezfunk]

I didn't know about this.  I opened my Roth IRA in June/July 2013 and applied for Folio only recently and was approved maybe 2-3 weeks ago?  However, I haven't done any trading on FOLIO yet, I have just been buying new notes.  Hey, Core, if you want to arrange some sort of test, I can pick a few 'sweethearts' for you to buy off of me 

[TravelingPennies]

from: core on October 14, 2013, 04:21:28 PM

[faeriering]

I think we talked about this on the forum before with Sarah.  I could trade on my account (Roth IRA) on folioFN, but she couldn't get a IRA account opened because they said she was in a folio only state and wouldn't be able to trade.

Hope that helps

[Rob L]

I live in VA so I can purchase notes direct from LC. I opened my Traditional IRA rollover account in May and soon after set up to trade notes on Folio. I've bought precisely 1 (count em) notes from Folio and sold 2. No objections were raised when I setup up my account for Folio trading, nor when I bought and sold notes on Folio. Maybe I just missed it when doing my initial study of LC, but I had no idea that I was prohibited from Folio trading (a pretty big thing to miss) until I saw this thread. Stunned actually. This is a really big deal. I haven't seen anyone post that they knew about this when they signed up and did so anyway; eyes wide open so to speak. Please speak up if you are out there. Peter; you want to weigh in on this?

Wonder if this is the law or just an LC policy. There are many things that by law you can't do in an IRA brokerage account that are fine in taxable ones. I believe buying securities on margin and selling them short are two examples. Even if you don't know the rules your IRA custodian will (I thought that was a part of their job). They won't let you make trades that break the law. That implies to me that (hopefully) this is a LC policy and not the law. If so when did this policy start and why is it there?