Can an IRA hold a stock in a non-publicly traded security?

[Guest roger k]

Can an IRA hold a stock in a non publicly traded security? If yes, can this be transferred to a Roth IRA? There is no way of valuing the stock without hiring a person to perform an appraisal.

[Guest Matt Tuttle]

I don't know how to handle the Roth part but certain IRA custodians will allow you to hold non-public stock as long as they can value it and they may impose some other conditions as well.

Matt Tuttle

203-609-9077

http://www.wealthadvisors.bigstep.com

[John G]

Custodian rules will determine this issue. Most will not accept a non-trading stock since they have an annual obligation to set the value which would present a problem. Same goes for transfering the stock into a Roth as part of a conversion since the value must be set at the time of the conversion.

[Dave Baker]

Does the IRA owner have anything to do with the corporation whose stock will be held by the IRA?

[Guest Paul Leslie]

Good question Dave not sure what you meant by does the IRA owner have anything to corporation. I am assuming you were making the poster aware that IRC 4975 about the penalties for a prohibited transactions between an IRA and a 50% or more owner, 10 or more shareholder, officer, director or highly compensated employee.

This situation would be most likely occur with an non publicly traded company.