No. of Recommendations: 0
My wife is in the process of rolling over her 401k account with her former employer into an IRA. Her new employer is requiring that she purchase a fairly large amount of company stock (this is a requirement for all company management).

Can she purchase the company stock within the newly formed rollover IRA even though the stock is not publicly traded?
Print the post Back To Top
No. of Recommendations: 0
"Can she purchase the company stock within the newly formed rollover IRA even though the stock is not publicly traded?"

Probably not. This would depend for one thing on what investments are allowed by the custodian of the IRA. Some custodians allow limited partnerships and some fairly esoteric investments which are not publicly traded. The way to find out is ask the custodian.

You are thinking since there is a rather large hunk of cash coming from the previous 401k, she could use this to satisfy the requirement of buying stock in the new employer's company. Good thought.

Good luck, Chris
Print the post Back To Top
No. of Recommendations: 0
Hi Chris,

Thanks for your input. Any suggestions for where to begin looking for an IRA custodian which allows "esoteric" investments, such as the one about which I am inquiring? Thanks again. Andy
Print the post Back To Top
No. of Recommendations: 0
"Thanks for your input. Any suggestions for where to begin looking for an IRA custodian which allows "esoteric" investments, such as the one about which I am inquiring?"

In your wife's case, my suggestion would be to ask her employer from whom she is supposed to buy this company stock. A particular broker? If so, that broker would be the one I'd expect would accept the stock in her IRA. Or will it be stock newly issued by the company? There will be certificates, right? A broker involved? Can that broker accept her rollover?

The laws about what investments can be in an IRA are actually quite liberal and reasonable. It is the custodian that imposes limits.

Good luck! Chris
Print the post Back To Top
Advertisement