What would you like to do?

Can you have margin on an IRA account?

already exists.

Would you like to merge this question into it?

already exists as an alternate of this question.

Would you like to make it the primary and merge this question into it?

exists and is an alternate of .

According to IRA regulations, if any part of an IRA is used as collateral, the entire IRA is considered to be distributed. Distribution of such accounts are subject to income taxes and an additional penalties. This is important because margin accounts require that you pledge your account as collateral. Your attempt to convert an IRA account into a margin account will nullify it's "qualified" status. It is for this reason that investment firms will not provide margin for a retirement account.


Also, you are not allowed to have/keep a debit balance in a IRA account


***Revision
Updated as Feb. 5, 2011

Select few brokerages will grant margin on IRA accounts.
However, the margin capability will not be allowed leverage.
The alternative purpose for seeking margin account is to avoid the settlement period (3 days, in which, the proceeds and principal cannot be used).
Interactive Brokers and TD Ameritrade allow margining IRAs for settlement avoidances, only. This service has been approved be the Securities Exchange Commission.

Bottom line: YES, you can margin an IRA account. NOT, for leveraging purposes.
22 people found this useful
Thanks for the feedback!

What is an IRA account?

  Answer   The initials stand for....... individual retirement account

Can you contribute funds to your IRA account at anytime?

  Answer   Yes, as long as it doesn't go over the total amount allowed by law for the year. When you make a contribution, you must identify what tax year you are con

Is a roth IRA a potentially tax free account?

Nothing is tax free. On a Roth IRA you pay the tax on the money the year you put it into the IRA. You are supposed to be able to withdraw it from the IRA without paying tax on

Can you move money from a self-directed IRA to a 401k account?

In some cases, people want to transfer the money from their IRA to 401(k) plans. Some of the reasons why people may take such a move are -They have too many retirement account

Can you take your IRA account and transfer that IRA account into another individuals IRA account?

  No, you can not transfer an IRA account from one person to another. IRA accounts are only for one particular individual. You would have to take a distribution from your

What is an IRA?

   An IRA is an  account set up at a financial institution that allows an individual  to save for retirement with tax-free growth or on a tax-deferred  basis. There a

How would one open an IRA retirement savings account?

One would need to make a visit to a bank in order to open an IRA retirement account. Once a bank visit was made, savings can be deposited and saved for retirement.

What causes a pattern day trading violation on a margin account?

  A pattern day trading violation occurs when you have more than 3 roundtrip trades on a margin account with less than 25,000 in equity in a five business day period. A ro

Can an IRA fund account be garnished in a lawsuit?

Generally IRAs are protected from creditors, and bankruptcy reform back a few years ago put them into the same category as pensions and annuities, which are exempt from seizur

What is a margin?

Such as in "margin of error" the distance away from the answer from which your answer can be.

What does the IRA do?

The Irish Republican Army (IRA) were a paramilitary group with the  goal of freeing Ireland from British rule.    They originally formed in 1913, under the name "The I
In Uncategorized

Can you short sell within your RRSP without a margin account?

No, you cannot. CRA interprets short selling as a speculative strategy, and therefore theoretically against the 'principals and intent' of a registered account which is to bu