Can an IRA hold a stock in a non publicly traded security? If yes, can this be transferred to a Roth IRA? There is no way of valuing the stock without hiring a person to perform an appraisal.

I don't know how to handle the Roth part but certain IRA custodians will allow you to hold non-public stock as long as they can value it and they may impose some other conditions as well.

Matt Tuttle
203-609-9077
http://www.wealthadvisors.bigstep.com

Custodian rules will determine this issue. Most will not accept a non-trading stock since they have an annual obligation to set the value which would present a problem. Same goes for transfering the stock into a Roth as part of a conversion since the value must be set at the time of the conversion.

Does the IRA owner have anything to do with the corporation whose stock will be held by the IRA?

Good question Dave not sure what you meant by does the IRA owner have anything to corporation. I am assuming you were making the poster aware that IRC 4975 about the penalties for a prohibited transactions between an IRA and a 50% or more owner, 10 or more shareholder, officer, director or highly compensated employee.

This situation would be most likely occur with an non publicly traded company.