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I am told by my roker (Charles Schwab) that I cannot write or buy options in my IRA. Is this part of the IRA law, or is it only a Schwab rule? In other words, if I wanted to trade in options, could I do it in an IRA?

I'm not aware of any prohibition specifically referring to options. There is a general prohibition on using an IRA as collateral. I'm also given to understand that there's a problem with options granted to employees, since the IRA couldn't exercise those options, but I don't think that's what you're talking about.

You can read about prohibited transactions in IRS Publication 590 and survey other potential custodians.

TMF ExRO
Phil Marti
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