IRA Notes sold- what next?

[dr.everett]

Hoping there are others still around that have closed out their IRA accounts. Here's my question:

My notes that can sell are now sold- there's three notes that are BK that should go away very soon. I still see recoveries coming in- in the last few days it's been $25-100.

How long did you, or did you, leave the account open to catch these remaining recoveries? I'd like to transfer out from Strata the last of my IRA funds, but given the last batch of recoveries, I'm inclined to wait a bit.

To give a frame of reference, at my high point I had $150K in notes, and about $40K in BK/CO.

Is it worth while to wait a bit for more recoveries before I transfer out and close up shop, or should I just go ahead and pull the trigger?

I know from others that once I transfer out the last step is to contact LC and have them close the account, at which point any funds that come in are forfeited. Looking to see based on others how much that might be based on their experiences, so I can decide what's right for me. If waiting another month gets me a significant chunk of change back I'm willing to wait.

[AnilG]

Just leave the account open until you are due to be assessed with fee for not maintaining minimum balance. Then just close the account.

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=4872.msg43496#msg88888888Quote"> from: AnilG on May 31, 2018, 07:12:55 PM

[lascott]

https://forum.lendacademy.com/index.php?topic=4872.msg43671#msg88888888Quote"> from: dr.everett on July 21, 2018, 07:47:16 PM

[lender90530]

I got an email from LC that my maintenance fee of $100 will be coming due in August and if I don't pay, I will accumulate a maximum of $30 in late fees. If it is not paid by Dec 31, my Strata Ira will be closed and the Ira account automatically converted to a taxable LC account. It will be treated as an IRA distribution and will be taxable. Since I am over 59.5 years old, and I only have a few thousand in the IRA, this seems like a great way to close the Ira and wait for the outstanding notes to be paid off without selling them at fire sale prices.

[Rob L]

https://forum.lendacademy.com/index.php?topic=4872.msg43675#msg88888888Quote"> from: lender90530 on July 25, 2018, 02:34:08 PM

[TravelingPennies]

By default if you have $100 in your LC account they will deduct it. The email says to contact them if you want to pay by credit card or check instead.

[BruiserB]

https://forum.lendacademy.com/index.php?topic=4872.msg43675#msg88888888Quote"> from: lender90530 on July 25, 2018, 02:34:08 PM

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=4872.msg43678#msg88888888Quote"> from: BruiserB on July 25, 2018, 09:09:55 PM

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=4872.msg43679#msg88888888Quote"> from: dr.everett on July 26, 2018, 02:57:16 AM

[pplinvestor]

@dr.everett and @lascott,
May I ask when was last Charged off note?  Any way to find out recovery from which charged off note?  Wonder whether you're getting recovery notes from notes charged off many months ago.
Thanks.

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=4872.msg43700#msg88888888Quote"> from: pplinvestor on August 06, 2018, 01:01:00 AM

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=4872.msg43700#msg88888888Quote"> from: pplinvestor on August 06, 2018, 01:01:00 AM

[TravelingPennies]

I am not a tax advisor but:   https://forum.lendacademy.com/Smileys/default/cool.gif" alt="8)" title="Cool" class="smiley" />

It seems like if you just had LC convert your IRA account with 0 balance (but notes that may lead to future recoveries) to a taxable account then:

1) There would be no tax implication of the conversion as you effectively withdrew 0 from your IRA.

2) Future recoveries would be treated just like recoveries are now in taxable accounts.  They will be reported as a "sale" for the value of the recovery with a basis of 0.

The net effect would be you would pay tax on 100% of the recovered amount, but that's better than just closing the account and giving all of the recovered money to Lending Club.

[TravelingPennies]

Well we'll see what happens- I turned in the paperwork last week- the STRATA side of things is closed already- I checked. I had transferred out the last remaining money prior to the close. On their forms I listed my taxable account as the "receiver" of any recoveries.

Now we'll see what kind of tax forms I get at the end of the year from all this. https://forum.lendacademy.com/Smileys/default/wink.gif" alt=";)" title="Wink" class="smiley" />