A home for my private placement roth ira

Submitted by NICK IANELLI on Mon, 2022-07-25 16:55

I had my private placement roth ira with a brokerage firm for a number of years.

They said they would no longer accept it.

I then transferred it to another brokerage firm that at first said they would accept it but reneged and only kept the traded stock portion. I should mention that the private placement investment issues monthly royalty amounts which I invest in traded stocks.

As a result of all of this my private placement investment is in a state of “limbo” with no custodian. The private placement company is holding my royalties pending a resolution.

I’ve reached out to several brokerage firms to no avail. I don’t want to loose my roth status. What are my options?



Submitted by Alan - IRA critic on Mon, 2022-07-25 17:44

  • They are not even giving you some time to locate a SD IRA custodian who would then submit a transfer from the current custodian?  Did you secure assurance from the current custodian that they could handle this investment? 
  • If the current custodian distributed the investment in kind out of your Roth IRA, you cannot sell it and contribute the cash in a rollover to a new Roth IRA. You would have to contribute the same holding as a rollover contribution within 60 days of receipt to the new Roth custodian. Further, you can only do one such 60 day rollover within a 12 month period for all your IRAs. Therefore, you cannot have done a prior 60 day rollover of a distribution made in the last 12 months.
  • I do not have detailed knowledge of which self directed custodians would accept your holding as a rollover contribution, so you will have to keep calling. Seems like the current custodian did not understand the investment they first accepted, so you obviously need to be sure the next custodian does. Your prior custodian should be providing the general class of investment on the annual Form 5498. You might provide a potential new custodian with a copy of the latest 5498, but no guarantee that this would help. 


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