# IRA's and offshore banks. **URL:** \ **Category:** Factual Questions\ **Created:** [June 25, 2002, 12:22am UTC](https://boards.straightdope.com/t/iras-and-offshore-banks/115797 "2002-06-25T00:22:11Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![welby1](https://avatars.discourse-cdn.com/v4/letter/w/838e76/32.png) [@welby1](https://boards.straightdope.com/u/welby1)\ **Post date:** [June 25, 2002, 12:22am UTC](https://boards.straightdope.com/t/iras-and-offshore-banks/115797/1 "2002-06-25T00:22:11Z")
Inspired by [this](http://www.straightdope.com/columns/020517.html) article by Uncle Cecil himself, I began to wonder about offshore banks and IRAs. Let me state plainly that I’m not looking to evade any taxes, but I AM looking for an IRA program that will allow me to invest more than the measly 3 or 5K a year. I’m in a position where I can, for a while anyway, invest more than that in my IRA, and with the stock market and low interest rates, I figure that’s as good a place as any. Does anyone out there know of a reputable bank that has this type of IRA available? Alternatively, does anyone know of an investment opportunity that is reasonably low risk but with a decent long term return? I AM not looking to invest in your uncle’s boyfriend’s former roommate’s door to door anything company. I’m looking for long term investments, or even short term investments, that will give me better than a 2 or 3 percent return. ---
**Author:** ![Duckster](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/duckster/32/1244_2.png) [@Duckster](https://boards.straightdope.com/u/Duckster)\ **Post date:** [June 25, 2002, 3:25am UTC](https://boards.straightdope.com/t/iras-and-offshore-banks/115797/2 "2002-06-25T03:25:09Z")
The IRA limits are set by law. If you find an offshore institution and attempt to deposit more than allowed by law, you are effectively breaking the law. Considering (1) the history of heavy-handedness of the IRA, and (2) Bush is in power, do you really want to risk money for your retirement? Why not look at other legal methods, such as defined benefit, pension, profit sharing, 401(k), multiemployer, ESOPs, 403(b) Annuities, 457 plans, SEPs, SIMPLEs, IRAs and ROTH IRAs? You might find one you qualify which allows you to invest more than the 3-5k you mentioned. ---
**Author:** ![Duckster](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/duckster/32/1244_2.png) [@Duckster](https://boards.straightdope.com/u/Duckster)\ **Post date:** [June 25, 2002, 3:26am UTC](https://boards.straightdope.com/t/iras-and-offshore-banks/115797/3 "2002-06-25T03:26:47Z")
> [@](#): > > \*Originally posted by Duckster \* > \*\*Considering (1) the history of heavy-handedness of the IRA, \*\* Meant to say IRS ! ---
**Author:** ![welby1](https://avatars.discourse-cdn.com/v4/letter/w/838e76/32.png) [@welby1](https://boards.straightdope.com/u/welby1)\ **Post date:** [June 25, 2002, 5:57pm UTC](https://boards.straightdope.com/t/iras-and-offshore-banks/115797/4 "2002-06-25T17:57:02Z")
Has anyone ever invested in Viaticals? I’ve found articles both for an against, but I’m wondering if and Dopers have any experience with them. ---
**Author:** ![Opengrave](https://avatars.discourse-cdn.com/v4/letter/o/919ad9/32.png) [@Opengrave](https://boards.straightdope.com/u/Opengrave)\ **Post date:** [June 25, 2002, 6:22pm UTC](https://boards.straightdope.com/t/iras-and-offshore-banks/115797/5 "2002-06-25T18:22:36Z")
> [@](#): > > \*Originally posted by Duckster \* > **The IRA limits are set by law. If you find an offshore institution and attempt to deposit more than allowed by law, you are effectively breaking the law.** as an add-on… Things may have changed since I worked with IRA’s a few years back but technically you _could_ contribute more that $2000 (at the time) to an IRA you just couldn’t deduct more than $2000 from your taxes. Add to this the fact that the ‘non-deductable’ contribution couldn’t earn any profit without substantial penalties and you end up with a case where it is actually legal to contribute more that $2000 but nobody in their right mind would do so. We regularly sent money back to policyholders who contributed more than 2K thinking “hey, its an IRA I’ll deduct this whole 30K!”. FTR we are talking the traditional IRAs here. I was getting out of the business just about the time the ROTHs were coming on the market so I am not sure about contribution limits for those. ---
**Author:** ![Opengrave](https://avatars.discourse-cdn.com/v4/letter/o/919ad9/32.png) [@Opengrave](https://boards.straightdope.com/u/Opengrave)\ **Post date:** [June 25, 2002, 6:29pm UTC](https://boards.straightdope.com/t/iras-and-offshore-banks/115797/6 "2002-06-25T18:29:06Z")
> [@](#): > > \*Originally posted by Duckster \* > **The IRA limits are set by law. If you find an offshore institution and attempt to deposit more than allowed by law, you are effectively breaking the law.** as an add-on… Things may have changed since I worked with IRA’s a few years back but technically you _could_ contribute more that $2000 (at the time) to an IRA you just couldn’t deduct more than $2000 from your taxes. Add to this the fact that the ‘non-deductable’ contribution couldn’t earn any profit without substantial penalties and you end up with a case where it is actually legal to contribute more that $2000 but nobody in their right mind would do so. We regularly sent money back to policyholders who contributed more than 2K thinking “hey, its an IRA I’ll deduct this whole 30K!”. FTR we are talking the traditional IRAs here. I was getting out of the business just about the time the ROTHs were coming on the market so I am not sure about contribution limits for those.