Ownership of Securities in Retirement Accounts Does Not Interfere With Rule 144
Many Shareholders of restricted stock choose to transfer their securities into an Individual Retirement Account (“IRA”). This transfer of 144 stock to an IRA will not affect the holding period under Rule 144(d).
The Normal Rule 144 Holding Period Analysis Applies
Even though this isn’t technically a “transfer” in the normal sense of a sale or gift of securities (since it involves the same social security number), the same rationale when it comes to analyzing the Rule 144 holding period applies.
The Same Documentation to Show the Origin and History of the Shares Applies
Just like with any other transfer, provided that the documentation is provided to show the origin and history of the shares, an experienced securities attorney with expertise in drafting Rule 144 opinions will demonstrate that any new “holder” may “tack onto” the holding period of the previous holder.