IRA Stock Account

Submitted by Sal Induisi on Fri, 2012-03-02 22:44

My question: I currently have an IRA Stock account with Fidelity. I am trying to purchase a private stock in this account and Fidelity and all big name companies have told me no.

Would anyone know a company that will allow me to rollover to purchase a private stock.

Thanks in Advance.

Sal
954-818-9470
[email protected]



Submitted by mk foss on Sat, 2012-03-03 01:42

I looked into this myself and was unhappy with the informtion that I received. For the stock I wasnted to purchase, the “recommended” IRA custodian required that I transfer the cost of the shares plus a minimum of $1,000 – they had set up fees, asset purchase fees and quarterly management fees. After the first year, I figured it would cost me $300 a year to hold that stock so I passed on the purchase. My husband bought unlisted stock from another custodian but they would only handle that particular stock and not the one I wanted to purchase. I was told that Fidelity and Schwab will only hold private stock in IRAs if they are of a minimum size – $500,000-$1,000,000.

Your best source would be to ask the company offering the stock if they have an IRA custodian that they work with.

Good luck.

Submitted by Sal Induisi on Sat, 2012-03-03 11:28

Thanks for the information.

Submitted by Peter Lingane on Sat, 2012-03-03 17:17

I’m not sure what is meant by “private stock” and “unlisted stock.” It is my experience that Fidelity will purchase stock which is not registered under the SEC Regulation D exception so long as the stock is on Fidelity’s approved list. I’ve never done this but there was no mention of extra fees. Vanguard will not purchase Reg. D offerings.

You must be an accredited investor to purchase Reg. D offerings. This may be the reason for the account minimums mentioned by Mary Kay

Submitted by Sal Induisi on Sat, 2012-03-03 21:03

Peter …..Private stock …meaning not on the exchange, a private company. Fidelity and all other big houses with not let me open a IRA Stock account to purchase private stock.

Sal

Submitted by Peter Shuper on Tue, 2012-03-06 17:32

Hi Sal,

My experience with this issue is not so much who will allow it, but rather, why are you considering it? You can simply tell me to bugger off, but I hope you have extended knowledge and experience with the company you are considering purchasing simply because (as you probably already know) many times these shares are illiquid and if you’re in a pinch, get stuck.

Anyway, if you still want to know, most of the major wire houses will allow you to do this once you jump through various compliance hoops.

Good luck.

P

Submitted by Sal Induisi on Tue, 2012-03-06 18:27

P……yes I want to move forward…any help would be appreciated.

Submitted by Bruce Steiner on Wed, 2012-03-07 03:01

The lawyer handing your estate planning should be able to give you the names of some custodians that will accept closely-held stock.

Submitted by Sal Induisi on Wed, 2012-03-07 12:32

My accountant does not know…..any help would be appreciated….so I can roll my IRA Stock Account to another IRA Stock Account that will allow me to purchase of private stock…thank you in advance.

Submitted by Russ Duckworth on Thu, 2012-03-08 04:22

I have used Millennium Trust in Chicago. http://www.mtrustcompany.com
They will allow private investments in IRAs and their fees are pretty reasonable.

Submitted by Sal Induisi on Thu, 2012-03-08 14:50

Thank you. Sal

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