Brokerage capable of linking cash and inherited IRA accounts? (IB can't)

J

jkoak

Does anyone know of a good brokerage that allows someone to link -- i.e., rapidly switch between, on a single trading platform -- a typical cash account and an inherited IRA account, both held by the same individual?

The idea would be to be able to seamlessly shift between the two, depending on the trading strategy. Trades would be primarily in U.S. equities and equity options, plus some European equities.

(Interactive Brokers claims they can do this, but they cannot and will not title an inherited IRA properly, and are thus out of compliance with IRS regs, creating risk for any inherited-IRA client. Which is too bad.)

Thanks for any thoughts!
 
Not sure if this helps, but I inherited an IRA (IB - USA). I just sent in the proper forms and they allowed me to roll it right into my main IRA. It was spousal, so maybe that is different?. But even before that I had a F&F adviser setup and could easily switch between accnts and create orders to allocate trades.
 
jkoak said:
Does anyone know of a good brokerage that allows someone to link -- i.e., rapidly switch between, on a single trading platform -- a typical cash account and an inherited IRA account, both held by the same individual?

The idea would be to be able to seamlessly shift between the two, depending on the trading strategy. Trades would be primarily in U.S. equities and equity options, plus some European equities.

(Interactive Brokers claims they can do this, but they cannot and will not title an inherited IRA properly, and are thus out of compliance with IRS regs, creating risk for any inherited-IRA client. Which is too bad.)

Thanks for any thoughts!
More...
Good question. I have never been asked before. I will ask tomorrow. If we can, it would only offer access to US listed exchanges. Are European equities a must?

Bob
 
jkoak said:
(Interactive Brokers claims they can do this, but they cannot and will not title an inherited IRA properly, and are thus out of compliance with IRS regs, creating risk for any inherited-IRA client. Which is too bad.)
More...

What's the issue with IB's title? I have two accounts that look okay to me (e.g. [My name] of the IRA of [Decedent], Interactive Brokers LLC Custodian). They mistitled one of them originally but corrected it when I opened a ticket.
 
Ameritrade offers this. I have IRA and regular account connected and there is a tab for each. If you login to one you can switch to the other without using the login for the other. You must select to connect accounts.

I use their ThinkOrSwim platform and have not configured to switch from one account to the other at TOS. TOS has tons of set-up capabilities that many users will never explore all of, so it may be easy there as well. Ameritrade support could say. But yeah, your basic Ameritrade login will do that with ease. If you only swing trade, you will be set.
 
jkoak said:
Does anyone know of a good brokerage that allows someone to link -- i.e., rapidly switch between, on a single trading platform -- a typical cash account and an inherited IRA account, both held by the same individual?

The idea would be to be able to seamlessly shift between the two, depending on the trading strategy. Trades would be primarily in U.S. equities and equity options, plus some European equities.

(Interactive Brokers claims they can do this, but they cannot and will not title an inherited IRA properly, and are thus out of compliance with IRS regs, creating risk for any inherited-IRA client. Which is too bad.)

Thanks for any thoughts!
More...
Are you sure IB is understanding your question ? It sounds like they are answering weather or not you can "cross" between the accounts mentioned. That would definately not be allowed by IRS REGS. 2 differently titled account in the same household is not an issue at any BD I know of.
 
I appreciate all the replies! I'll take a look at TOS in particular and Lightspeed, depending on what Robert has to say.

Re: the issue of titling: As elt894 notes, IB evidently titles inherited IRAs as, for example, "John Smith of the IRA of Sarah Smith, Interactive Brokers LLC Custodian."

But this seems out of compliance with IRS Notice 2007-7, which requires a clear specification of beneficiary and decedent:

***
A-13. The IRA must be established in a manner that identifies it as an IRA with respect to a deceased individual and also identifies the deceased individual and the beneficiary, for example, “Tom Smith as beneficiary of John Smith.”
***

I wouldn't be such a stickler, except if you can Google around to various CPA pages and FAQs, they *strongly* suggest you get the titling right. The consensus seems to be "Do not screw up the titling on pain of tax death." Here's one reference:

https://www.wsj.com/articles/SB118013894086115348

You can find horror stories of mistitling issue on Bogleheads, as well.

Not being a tax lawyer, I'm in no position to determine whether IB's "sort of in the ballpark" titling scheme is *probably* fine -- or what risks it creates for the client.

I will say though that an IB rep basically said they are "aware" of the issue and were trying to fix it, but then eventually came back to me and said there was nothing they could do in the near term.

So I'm looking for alternative platforms. Thanks again!
 
Robert Morse said:
We can do inherited IRAs and you can switch account numbers easily between accounts.
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Is there a benefit to maintaining an inherited IRA as a separate entity? Is there a penalty for just transferring the inherited balance into one's personal IRA??
 
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