berklee Member  Posts: 28 Joined: 9/16/2013 Location: Greenville, SC  User Profile | Mark, Just a quick thank you for such a detailed and clear answer to setting up the portfolio. With IRA accounts, if memory serves me correctly, in a long-only portfolio such as FTM02, there needs to be a 3 day period after closing a trade (pending settlement) before the proceeds can be applied to another trade. Use of proceeds from a trade that has yet to settle is considered "self-dealing" by the IRS. One way around this is to obtain Reg-T margin, however, this technically exposes one to UBIT (unrelated business income tax). [There is a second way that completely circumvents margin restrictions in IRA accounts - but that is another discussion, and definitely requires payment of UBIT tax... but there is also a way around this, though not simple, requiring a foreign account] Is there any configuration that needs to be enabled to enforce compliance with the 3-day "self-dealing" rule. Thanks, Lee [Edited by berklee on 7/3/2017 11:16 PM] | |
