Rocket Dollar Does not support in-kind transfers
These transfers, which involve moving an asset without selling, are not supported. The only type of transfer that can come into Rocket Dollar is in retirement cash. Our custodian partner will not validate any other type of transfer.
If Rocket Dollar adds in-kind transfer support for equities in the future, could I then transfer it to my new IRA LLC?
No. It is not possible to change ownership of an asset for what is called "direct custody" in your IRAs name to IRA LLC ownership and it will not be supported. Direct Custody IRAs and IRA LLCs must be handled as two separate paths of ownership. The asset must be purchased directly by the IRA LLC, from funds with the IRA LLC bank account or a brokerage account in the name of the IRA LLC. The only asset that can pass from the IRA Custodian, through an LLC, to the LLC bank account is cash.
What if I would like to use a direct registration platform like Computershare?
Your Rocket Dollar IRA LLC must own the shares. You cannot take shares from a custodian such as TD Ameritrade or Fideltity>Rocket Dollar > IRA LLC> Computershare as you would have to have sold the shares.
To purchase equities, you must follow the path of IRA Custodian>Retirement cash rollover to Rocket Dollar>Open IRA LLC Equity Account to buy shares
You must own the shares from the IRA LLC, through an LLC brokerage account. Since this is a specialty account, know that you must open it yourself and also make sure it has exempt tax reporting. Rocket Dollar cannot assist with any transfers to Computershare.
If you use Computershare, it must be clear that your IRA LLC name owns the account, not you personally.
Rocket Dollar cannot directly assist with any internal operations at Computershare. All actions and knowledge of prohibited transaction rules are the responsibility of the IRA LLC manager.
Are there any issues with direct registering IRA public equity shares?
The recent case McNulty vs Commissioner was related to precious metals, but voiced significant concerns with an IRA LLC holder putting their investment assets in a place of "unfettered command" and away from a custodian. This case could be used to build another against someone directly registering their shares or taking personal and negligent custody of crypto assets.
If there is no IRA custodian that can validate your shares as an IRA asset, then you will owe taxes on that shares on any sale or prohibited transaction.
I own stock shares personally, can I transfer them to an IRA LLC?
This is a prohibited transaction, known as self-dealing. When you open an IRA, one of the main "prohibited persons" is yourself. Selling/gifting shares between yourself or your IRA, is an immediate prohibited transaction, which is not allowed and has been reaffirmed through decades of case law. Distribution of the entire IRA is the entire IRA, not just the dollar or assets involved in the violation.