So I am trying to set up a Lending Club IRA account, and in the process I thought I had done something wonky, so I e-mailed support to ask them to see if I'd done it right.
When they e-mailed back about my question, they added: "As a Massachusetts resident, you can participate via a taxable account in our secondary market (The Note Trading Platform) buying and selling notes . Massachusetts residents are restricted from participating in the issuance of notes on the primary platform by state securities authorities. Also, please note that residents of restricted states such as Massachusetts are not able to buy and sell notes via an IRA on the secondary market at this time." (Emphasis mine) They helpfully added some links to FAQs and even a Lend Academy post, none of which said anything about Massachusetts residents and IRAs. I can't find anything about it on their site, although I do find it hard to navigate the Folio/LC FAQs.
I've never read anything about there being different rules for IRAs than taxable accounts on what kind of securities are legal or not legal. Is this something other people have run into? I'm really disappointed, I was planning on at least tripling my investments into LC and now I really can't because that money is earmarked for retirement.