• Subscribe
  • Contact Us
  • About LendIt Fintech News
  • Home
  • Menu Item
  • Menu Item
  • Menu Item
  • Menu Item

Lend Academy

LendIt Fintech News: Daily Coverage of Fintech & Online Lending


  • Editorial
  • Daily News
  • Podcast
  • Investor Forum
  • Events

How to Open a Lending Club IRA

April 5, 2011 By Peter Renton 7 Comments

Views: 42

I have mentioned before that I am a big fan of the Lending Club IRA. I rolled over all of my wife’s 401(k)’s and other IRA’s into Lending Club last year. Now, I am opening a new IRA in my own name. So, I thought I would create a short video and share with everybody how simple it is.

Now here are a couple of things to keep in mind if you are thinking about a Lending Club IRA:

  1. Your paperwork and check need to received at Lending Club by April 15, 2011 to be eligible to open a 2010 IRA.
  2. Your IRA will be “No-Fee” (as in free) if you open your account with $5,000. To maintain the “No fee” status you need to kick in more money next year to ensure your balance is above $10,000 after 12 months.
  3. You can open a Traditional IRA, a Roth IRA or a SEP IRA.

I believe everyone, if at all possible, should use an IRA instead of a regular taxable account when investing at Lending Club. You don’t have to deal with all the hassles of working out your peer to peer lending taxes and your money grows tax free. And the process is so simple. The video is just over five minutes and the whole process from start to finish took me about ten minutes. Here’s the video.

For Prosper investors at this time unfortunately you do not have an option to open an IRA there. If you want to use a retirement account for your p2p lending investments then Lending Club is your only option.

One last tip, when writing your check you need to make it out to SD IRA Services FBO [your name]. This part is not made clear on the application so I thought I should clarify here.

Filed Under: Investing/Lending, Videos Tagged With: IRA, Lending Club

Views: 42

Comments

  1. Aaron says

    April 5, 2011 at 12:54 pm

    Is there any info on rolling over a 401k? Or any other IRA?

    Reply
  2. Peter Renton says

    April 5, 2011 at 2:43 pm

    @Aaron, Holy crap! I actually missed including a section in the original video, and that is the step that deals with rollovers. That is now fixed in the video (go to 2:06 in the video for the step that was missing – I recorded each step in separate segments and somehow missed a segment). Thanks for bringing this to my attention.

    You can rollover an IRA or 401k – I did this on four different retirement accounts for my wife last year. Let me know if you have any more questions.

    Reply
  3. Dan B says

    April 5, 2011 at 7:26 pm

    So the IRA cannot be opened via a ACH, is that correct??

    Reply
  4. Peter Renton says

    April 6, 2011 at 10:31 am

    @Dan, I double checked with Lending Club on this one. ACH is definitely not available for new IRA setup or for new contributions to an existing IRA. I was told there is a wire facility but the funds have to go through SD IRA Services, the third party that processes the money (not really worth the extra hassle and expense). I was also told by my rep at Lending Club that they are working on something that will allow an ACH type transfer for new contributions but it is not close to being implemented yet.

    Reply
  5. Dan B says

    April 6, 2011 at 1:16 pm

    Thanks for checking Peter.

    Reply

Trackbacks

  1. How to Setup an IRA for Prosper says:
    June 2, 2011 at 10:55 am

    […] investments in a tax-sheltered vehicle like an IRA is smart. I have written before about the Lending Club IRA but for those investors who prefer Prosper it looks like you now have an IRA option of your own. Of […]

    Reply
  2. My New Lending Club IRA Debuts at 17% says:
    June 13, 2011 at 2:15 pm

    […] Lending Club Roth IRA. At the time I recorded a video of the actual process of opening the IRA that you can watch here. I have been slowly investing my funds into new notes in this IRA. Last week Lending Club posted my […]

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Investor Intelligence

Peter Renton's Returns

Investor Forum

Lending Club Review

Prosper Review

Investor Resources

Most Popular Editorials

The Pure Marketplace Lending Model is Dead, the Hybrid Takes its Place

The 2018 Lending Club and Prosper Tax Guide

My Returns at Lending Club and Prosper

Map of Available States for Lending Club and Prosper Investors

Banks and Marketplace Lending Platforms: Ideal Partners?

Subscribe to the Podcast

Subscribe to the Lend Academy Podcast on iTunes
Subscribe to the Lend Academy Podcast
List of Podcast Episodes

Archives

Follow @LendAcademy Follow @LendIt

ABOUT LENDIT FINTECH NEWS

LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

We are a team of fintech enthusiasts who have been covering the industry for many years. With a deep knowledge of online lending, digital banking, blockchain, artificial intelligence and more our team covers the daily news and writes in-depth editorials.

Recent Editorials

  • The MLA and OLPI Merge to Form the American Fintech Council
  • Marcus Co-Founder Leaving for New Walmart Fintech Initiative
  • Top 10 Fintech News Stories for the Week Ending February 27, 2021
  • Podcast 287: Brad Paterson of Splitit
  • ODX and Fundation Join Forces to Form Linear Financial Technologies

Copyright © 2021 · Metro Pro Theme on Genesis Framework · WordPress · Log in