IRA Account question?

C2
1

I want to know If I bought stock under IRA account on 1st August & sold all the bought stock on 7th August & on the same day I bought another stock or on the next date i.e. 8th august .



Will it process the order placed on 7th August after selling bought stock of 1st August.



Thanks for the help

2

Kiran,

If you’re trading an IRA, you have to assume that the funds for the August 7 sell will not settle back in your account until COB August 10. (Trade date August 7+3 business days). You should not “add” those funds back into your system equity until August 11. I suspect C2 can’t do this automatically for you, so you would have to track it externally.



That means for the buy you are attempting to make on the 7th or the 8th, you must already have available equity since you won’t get the funds from the 8/7 sell until 8/11. If you don’t have existing equity, the buy you are attempting to make on the 7th or 8th will not go through in many IRAs. (Interactive Brokers is an exception; accounts are margined expressly to bypass T+3.)



http://www.sec.gov/investor/pubs/tplus3.htm



Christina

3

Hi Christina



Thanks for making me understand IRA functions.

I will develop my system accordingly.



Regards,

Kiran