Short Selling in IRA / Profit Sharing Plan

[Guest tschotland]

Hello,

I am trying to understand why it is that all the brokers I talk to will not permit short selling in an IRA nor in a profit sharing plan. They claim there are IRS and SEC regulations prohibiting it but cannot supply specific citations. Meanwhile I have located a revenue ruling (95-8) and PLRs in which the IRS has held that borrowing stock does not create acquisition indebtedness and UBTI. There is also a DOL class exemption (Prohibited Transaction Exemption PTE 75-1) that permits short selling. Can anyone tell me where in the law it states that short selling is prohibited?

I am cross-posting this to the IRA/Roth IRA board. I don't find a board related to defined contribution plans.

Thanks,

Tom