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I'm not aware of any prohibition specifically referring to options.

Is the poster referring to options trading, i.e., selling puts or writing calls, etc.? My online broker (DLJDirect) prohibits options trading in an IRA account because such trading requires a margin account, which effectively puts one's portfolio up for collateral. I assume the same prohibition holds for shorting stocks in an IRA, too.

Don't know if that's an IRS law, but it sure makes sense to me, because if an options trade goes south, or a short goes north, you can't just add money to cover the trade if you've maxed out your annual contribution.


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