Segragating your assets from your IRA custodian’s Bal Sheet
Ed-
In an effort to have my publicly traded stocks segragated from my Custodian Broker’s assets, I have ordered actuat stock certificates to be held in my Broker Custodian’s company safe. My broker custodian is a very large international company with over 20 million clients. They will charge me an annual fee for this service, which is fine by me. The have informed me that they can have any stock certificate named in two ways that will separate my stocks from their balance sheet and not trigger any taxable events/ IRA distributions.
The first way is to have the certificate read as follows: Broker Name for the benefit of MY Name. Any FUTURE dividends or distributions from my company stocks will go into my IRA as before the any stock certificate’s were issued.
The second way is to have the certificate read in my Name only. Any FUTURE dividends or distributions from my company stocks will be mailed directly to me and be considered an IRA distribution and of course taxable.
DO YOU CONCUR WITH THE INFORMATION I HAVE RECEIVED FROM MY BROKER CUSTODIAN? THANK YOU!
Permalink Submitted by Denise Appleby on Fri, 2008-12-05 05:39
[quote=”[email protected]“]Ed-
In an effort to have my publicly traded stocks segragated from my Custodian Broker’s assets, I have ordered actuat stock certificates to be held in my Broker Custodian’s company safe. My broker custodian is a very large international company with over 20 million clients. They will charge me an annual fee for this service, which is fine by me. The have informed me that they can have any stock certificate named in two ways that will separate my stocks from their balance sheet and not trigger any taxable events/ IRA distributions.
The first way is to have the certificate read as follows: Broker Name for the benefit of MY Name. Any FUTURE dividends or distributions from my company stocks will go into my IRA as before the any stock certificate’s were issued.
The second way is to have the certificate read in my Name only. Any FUTURE dividends or distributions from my company stocks will be mailed directly to me and be considered an IRA distribution and of course taxable.
DO YOU CONCUR WITH THE INFORMATION I HAVE RECEIVED FROM MY BROKER CUSTODIAN? THANK YOU![/quote]
I am not liking the ‘second way’. Your IRA assets must be held in the name of your IRA, which would be as indicated in the first option. If the securities are placed in your name, then that would likely be a distribution that is reportable and considered ordinary income for the year. If dividends are sent to you and not your IRA, then it only confirms that the re-registration was part of a [url=http://www.retirementdictionary.com/Distribution.htm%5Ddistribution%5B/url%5D.