IRA Incentive

Is it is a violation to give a customer a monetary incentive to rollover their IRA? A tax attorney is telling us that this is a Department of Labor violation.

I guess E-Trade and TD Ameritrade are probably going to be in hot water then. Like any such claim, go to the source and ask for the specific citation:

http://www.kiplinger.com/features/archiv...e-accounts.html

You can offer incentives, but there are some limitations. Let me see if I can track them down.

Just to follow up, someone just went through the trouble of getting a private letter ruling on this issue: http://www.irs.gov/pub/irs-wd/1310043.pdf

It backs up the prior two private letter rulings which upheld the ability to provide an account opening bonus on retirement accounts.