Transfer from IRA to Atty IOLTA for Investment?

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Question:

Should our trust dept allow transfer from a self directed IRA to an attorney's IOLTA account for an investment when there is no fiduciary relationship with the attorney?

Answer:

You cannot "transfer" an IRA to someone who you know does not qualify as a fiduciary under ERISA. If your customer wants the money you can cut him or her a check and report it as a distribution using a code consistent with his or her age. If it ends up getting rolled over to another IRA within 60 days they're good. Otherwise, they're toast.

Sounds bogus to me...

First published on BankersOnline.com 4/8/13