IRA Custodians
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IRA Custodians You get all kinds of interesting stuff when you're on the IRS email lists. (At least it's interesting to me) Here is a list of approved Non Bank Custodians for IRA's. http://www.irs.gov/pub/irs-drop/a-11-59.pdf I know there are some of you out there who want to allow people to have their portion of your club be in an IRA. To do this, one of the things they need to do is to find a company that is willing to act as custodian of such an account. This list provides some ideas of businesses you might contact about this. I don't know whether they would all be interested in working with you or not, but it's a place to get ideas. -- Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio I noticed that Fidelity is not on that list. Is that something I should be concerned about? I didn't think the Feds let you invest your IRA in a LLC such as a club but I am by no means an expert. Thanks, Paul Madison On Aug 30, 2011, at 10:50 AM, Laurie Frederiksen wrote: You get all kinds of interesting stuff when you're on the IRS email lists. (At least it's interesting to me) I don't know a lot of specifics about this list, I'd contact Fidelity if you have any concerns. This is only a list of non-bank custodians. Perhaps their accounts are accommodated under their bank. To have an IRA as a member of a club, you have to set up as a limited partnership. IRA's cannot be general partners. But, that's about the extent of my expertise on the subject. If you are interested in doing it, you'd probably want to contact a lawyer for more details about setting up your club to accommodate this. I do know clubs who are doing it. If any of them are on this list, perhaps they can chime in with more information. -- Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio The absence of Fidelity is nothing to be concerned about. Fidelity's IRAs are held by Fidelity Management Trust Company which, I assume, qualifies as a bank under Section 408(n).
Ira Smilovitz
In a message dated 08/30/11 11:58:22 Eastern Daylight Time, madispa@gmail.com writes:
OK, let's look at the definition of a bank under the Employee Retirement Income Security Act (ERISA), which buried is in the Internal Revenue Code:
"408(n) Bank. -For purposes of subsection (a)(2), the term "bank" means - Fidelity has a "trust" company that falls under the section 581 definition without having to comply with banking specific regulations such as related to deposit terms and consumer lending. Also note that while Schwab owns a bank, they are on the list. So, the real answer to your question ask for proof, don't rely on the IRS.
Mark Eckman
On Tue, Aug 30, 2011 at 10:58 AM, Paul Madison <madispa@gmail.com> wrote:
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