A good friend has a private medical company that will begin production in 2007. His goal is ultimately sell his company. I have an opportunity to buy shares/ownership in this privately owned company but would like to do so with money currently in a rollover IRA at Foliofn. Is this doable without paying an early withdrawal penalty - and, if so, how would it be done?
Thanks,
Smufty

Is this doable without paying an early withdrawal penalty - and, if so, how would it be done?

1. You must find a bank or broker who is willing to act as the IRA custodian for the shares. These typically charge several hundred dollars a year in fees.
2. You must transfer funds from the FolioFN IRA to the new custodian.
3. You must direct the custodian to buy the shares--you must not participate in the transaction yourself.

FolioFN will probably charge you a transfer fee and an account closing fee. Check your fee schedules.

As long as the money goes from IRA to IRA, there is no early withdrawal penalty.

However I am not a lawyer or a tax expert and I suggest that you consult with one before embarking on this project.

For more info you can ask on the "Retirement Investing" board:
http://boards.fool.com/Messages.asp?bid=100154

Thanks jrr7,
That is pretty much what I found out. I am transfering the necessary cash from my Foliofn account to an existing IRA account at E*Trade which I have kept open because (unlike Foliofn) they allow me to buy option puts and to purchase on the AIM segment of the London Stock Exchange. I have not yet found out what fee E*Trade will charge for this service.
Regards,
Smufty