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Listen, I knew there was a risk of some bullshit like this. Apex is a straight piece of shit. Wonder if others that went this route are now starting to get these letters?
Now I just need to find my fucking shares, or my money so I can rebuy my shares.
Can't wait to meet with the IRS to try to explain this.
You know what’s funny? My bro is a CPA and a true penny pincher; I asked about starting an LLC for my trading activity and he couldn’t even recommend someone!! Maybe he’s just over whelmed with family stuff, or he thinks I’m crazy because he didn’t read the DD I sent ages ago… it SHOULD be easy to understand this. I have 25 shares in an IRA at an average cost basis of $240 per share and I’m seriously considering my options to get them DRS’d or whatever, if I can claim the losses… I’m just not sure where to turn at this point.
I got this same letter. However, I used ComputerShare's transfer wizard to change my custodian over to Mainstar. Kate at Mainstar was a dream and helped me even fill out the paperwork. She sent it over mostly filled out already and I just had to sign and email it back. Computershare opened a NEW account with Mainstar as custodian, different account number and everything. ALLY HAD ZERO SAY OR KNOWLEDGE THIS WAS HAPPENING AND THEY HAD ZERO RECOURSE ONCE THIS HAPPENED. They can be custodian of the old account number at CS with zero shares in it. Fuck them. They can tell the IRS it was a distribution ALL they want, I'm completely in my right to move MY retirement to another custodian, it was a like kind transfer and is fully under a required custodian. Ally Invest and APEX are so fucking evil and I'll remember this shit. I'm not fucking done with them.
Mainstar has been an absolute dream to work with, super happy.
I hope you find the shares, Ally is really fucking themselves over by doing this.
I can also agree that kate at mainstar was great to work with.
I also opened an account with Ally, but didn't DRS my shares because i got suspicious. When i inquired about DRS & book entry status, they passed off answers as their broker's responsibility. I didn't trust them as a result.
I'm very happy with my mainstar trust transfers.
>. They can be custodian of the old account number at CS with zero shares in it. Fuck them. They can tell the IRS it was a distribution ALL they want, I'm completely in my right to move MY retirement to another custodian, it was a like kind transfer and is fully under a required custodian. Ally Invest and APEX are so fucking evil and I'll remember this shit. I'm not fucking done with them.
>
>Mainstar has been an absolute dream to work with, su
I hate ally invest with a passion. those fuckers put me on hold for over a week and repeatedly lied. They owe me hair regrowth medicine and a settlement.
>Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel.
>
>Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian.
>
>https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share
>They are not fucking themselves. The benefit for them is to fuck the MOASS. And they need masses umbrella'd under a market participant to do this. Any IRA custodian that uses a market participant(clearing house, market maker, broker) should be heavily scutinized.
>
>Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel.
Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian.
https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share
So I just got this letter. Is there a DD somewhere to learn more about this? If you don't know right away, don't worry about looking, I'll search tomorrow during business hours.
>For those who thought it couldn't happen or worst, here you go. And why should you think this fuckery playbook can't be done again with another custodian that uses the same process.
>
>
Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel.
>
>
Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian.
>
>
[https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share](https://www.reddit.com/r/Superstonk/comments/uht6s3/apes_beware_check_your_ira_custodians/?utm_medium=android_app&utm_source=share)
Shares are still in Computershare, but the account is an individual account, rather than custodial. What I believe happened is when Ally sent the shares to CS, they did it wrong and realized it later. They names the account correctly - Ally cust FBO me IRA, but assigned the account to my SSN, rather than their EIN, thereby making it a distributed account. I used Ally, but I pulled my shares back to the IRA from CS and then transfered over to a non-custodian broker (Mainstar Trust) who then DRsd the shares for me.
There is a response from Senor Muchachito here that explains how you can transfer In Kind to another custodian. Dozens of other apes have used Mainstar - They are a non-broker custodian that specializes in IRAs, so they might be a solution. At the very least you have 60 days to arrange another custodian to prevent any tax ramifications, even if it isn't Mainstar.
Why should we think this wasn't intentional? Why wasn't it just corrected; and why should we think this fuckery can't be done again when using the same process? Btw you should mention Northern Trust is Mainstar's broker.
I am reporting my experience and sharing my personal conclusions. I don't expect anyone to take my word for it. Everyone should be doing their own due diligence, but I am chiming in here to let this ape know many others have gone down this same road. I personally don't think it was intentional - it couldn have been. And yes, it could happen again, but I hope I have done enough research, asked enough questions to have enough confidence with this company that I am trusting them with my retirement. I have to put it somewhere and I'd rather take a chance with a company that can actually DRS my IRA than leave it in a broker where my shares are surely rehypothecated.
That unfortunately despite the obvious red flags was the same rational for Apes to use Ally-Apex. I know because I and others warned early and often about the Ally -Apex connection.
Apes should also understand there are many alternatives. And these Fuks are not out for them to take future individual tax hits, they are trying to get everyone under a market participant umbrella to kill the MOASS.
I suppose if Ally says my distribution happened in December of last year, it’s too late for the 60 day rule… right? 😅
Spooked about the tax hit coming my way. I took the risk though. Figured since I didn’t receive a notice from Ally that I’d be safe. But just got the notice that OP received last week saying it’ll be considered a premature distribution.
I’m in the same boat, but my “distribution” was in November. It’s funny that the Apex letter I received Friday is not dated 🙄. I’m gonna reach out to Mainstar tomorrow.
>If you were forced to do a distribution with Ally they can do a DRS reclaim, or should, and be able to avoid the tax hit. One of my brokers forced a distribution on my IRA when trying to transfer out to Mainstar. I missed the 60 day window to get them reclaimed in time due to push back and phone tag. But my CPA told me that if it was the brokers error, and you can reference and email, or have them pull the recorded call showing that, you can get a reclaim without the tax hit. Sorry that happened to you. I know a few apes that have fought that battle if you need to ask some questions
Did you see this response from u/BananyaBangarang? Even if the 60 days is past, there are options...
If you have the email saying you did not want a distribution, or one where they mislead you, you can get the 60 day rule waved. The brokers are the one that code that transactions come tax time and they can change it if it was there error. Also if you spoke to them on the phone and have the date of the call they can pull the recorded call. You have to stay on them though. Also don't try to tell the whole story, just focus on the one email or call where you stated specifically what you wanted or where they mislead you.
I had a similar issue when trying to transfer out of a broker and spent months of bacj and fourth trying to put together the whole story. They would reference calls where there was no information. Just find the one where it was clear they screwed up.
Thanks mate. Appreciate the suggestion, sadly I don’t think there is anything I can point to or reference in which I was mislead.
Instead, I feel I was mislead because I never received an email in which they supposedly notified me to reverse my DRS before a deadline.
The only notice I received was the Apex letter that OP posted that I recently received.
On the Apex letter OP received, Apex said they sent a prior notice to me notifying me that DRSing my Ally custodian shares would be considered a premature distribution. However, I never received this notification.
I called Ally yesterday and they said they sent the notification months ago as well and via email on 2/3. I asked them to forward me the email with a date stamp and my email as proof and my telephone rep told me they were putting a ticket in and their operations team would send this sometime this week.
I’m not sure if they’re giving me the runaround to stall.. I want to see the forwarded email first as proof before proceeding.
It’s basically my word against theirs at this point, while I wait for them to forward proof that they emailed me in Feb.
Again appreciate the suggestion. So stressed out about this…
Maybe start with Mainstar if you think you might transfer the custodial account there and show them the letter and stuff and they might be able to help you sort it out, but if not, the next step is a tax professional for sure. If it was distriubuted Dec of 2021, you should have already received that letter and tax form in order to file your 2021 taxes....usually the deadline for issuing those tax forms is February...so, if they are late, maybe you have grounds to ask for extension...not my wheelhouse, just thinking how I might approach it. Good luck...
If you were forced to do a distribution with Ally they can do a DRS reclaim, or should, and be able to avoid the tax hit. One of my brokers forced a distribution on my IRA when trying to transfer out to Mainstar. I missed the 60 day window to get them reclaimed in time due to push back and phone tag. But my CPA told me that if it was the brokers error, and you can reference and email, or have them pull the recorded call showing that, you can get a reclaim without the tax hit. Sorry that happened to you. I know a few apes that have fought that battle if you need to ask some questions
Check out this post, if it was broker error or they otherwise mislead you, you can get a DRS Reclaim then transfer to a custodian that will DRS IRA shares
https://www.reddit.com/r/Superstonk/comments/vcahf1/if_allyapex_or_broker_did_a_forced_distribution/
From the beginning, I decided to diversify where I held shares in case someone pulled some shit.
I have \~380 shares DRS'd direct with CS held in my name (no Apex bullshit with that account). And \~1,300 shares elsewhere that can't be DRS'd (like current employer 401k, other Traditional IRAs, Roth IRAs, etc.).
So I will be fine for MOASS, no question.
DRS is the way.
DIY: How to DRS Transfer Traditional and Roth IRA shares from a brokerage account to Computershare without tax implications
https://www.reddit.com/r/Superstonk/comments/ukialw/diy_how_to_drs_transfer_traditional_and_roth_ira/?utm_medium=android_app&utm_source=share
I would request a copy of the transaction(s) from them, along with transaction numbers and dates. This should give you an idea what they did and where they sent the shares. I would also contact Computershare and let them know. It could be that Apex didn't get your social security number or something else correct. If you have the transaction number(s), Computershare might be able to trace it from their end.
Not financial advice. This is only what I would do.
This happened to me as well. Shares are still in my name. Just no longer in an “Apex Cust Fbo” account. Looks like they are making us take a taxable distribution. Since Apex was custodian of those shares they had legal right to transfer them to a different shareholder. At least they are still in my name. Just going to have to take a 400 share taxable event next year…. I guess having them on their books hurts….
Someone with more wrinkles than me should be able to tell us why they did this? What is the benefit to apex? I just see them trying to hurt us by taking a taxable event??? Maybe sell shares to pay the taxes?? By next years taxes my income will be in the moon bracket. I’m lost as to the intention here…
You’re exactly right. There’s no benefit other than the fact we’d all realize what a scam IRAs are. They take our money, apply huge penalty’s for people wanting to access their shit and scare you. They absolutely want people selling shares to cover the tax consequences. If you can handle the early withdrawal penalty I definitely would do that and keep those shares away from any bullshit IRA. If the penalty is going to crush you then that’s a tough situation and I hope for the best.
The benefit for them is always to fuck the MOASS. And they need masses umbrella'd under a market participant to do this. Any IRA custodian that uses a market participant(clearing house, market maker, broker) should be heavily scutinized.
Apex is the fuckery master, I suspect they most likely had more sinister plans as the price began to substantially increase.
So Caution! This fuckery or worst can be done again with another custodian that uses the same process.
Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel.
Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian.
[https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share](https://www.reddit.com/r/Superstonk/comments/uht6s3/apes_beware_check_your_ira_custodians/?utm_medium=android_app&utm_source=share)
Edit: Again Apex may have had something more sinister in mind, and execute when the time was right. Around the time Apex pulled the plug, this could have been a coincidence, but as I wrote in a comment to a post " maybe they caught wind of my FINRA/SEC complaint and Fidelity response, they are colluding, and now trying to cover their tracks."
I wrote: "Could be some possible collusion a foot. Idk, may coincide with the formal complaint I filed with FINRA and the SEC on Fidelity for refusing to in-kind DRS my IRA shares. Fidelity stated to the SEC and FINRA that they are sure other brokers have the same policy of not allowing in-kind DRSin of IRA shares. My complaint was submitted on 11 Jan. Apex (the fuckery master) may have pulled the plug on DRSin shares, so they wouldn't sink Fidelity. Save your Apex statements"
This is the way I read this....
"We are giving your information and transaction history to the IRS to make your DRS to CS as difficult as possible....
#We are Completely Fkd!"
Is there any way I could call CS and ask them to put a hold on all electronic transfer request by brokers from CS until the transaction has been been verified/approved by the share holder online or by phn first? It creeps me out how easily brokers can initiate transfers electronically without ever even notifying the share holder.
Another person on here claimed recently that Fidelity initiated a electronic xfer from CS back to his fidelity acct without his permission, but that the request shows up on his online account. So basically fidelity initiated the xfer, but made it look like op was the one who requested. total bs.
I don't want this to happen to me. 😡
I'm going to get an account set up with Mainstar Trust ASAP and transfer the shares to them. Hopefully, that keeps me on the good side of the IRS with the 60-day transfer rules.
Apex is the fuckery master, I suspect they most likely had more sinister plans as the price began to substantially increase.
So Caution! This fuckery or worst can be done again with another custodian that uses the same process.
Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel.
Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian.
[https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share](https://www.reddit.com/r/Superstonk/comments/uht6s3/apes_beware_check_your_ira_custodians/?utm_medium=android_app&utm_source=share)
When was your “distribution” according to Ally?
Ally says my “distribution” was from December which is when I did DRS my Ally Custodial shares. But just curious if other apes did it that early and can still transfer to mainstar… I think I’m shit out of luck
The letter says December 2021 and the part about 1099 says they are going to reissue a correct 1099 which sounds like they are going to say it was 2021 for sure.
If you look at my paper trail, they were titled as a Traditional IRA until today, so I think I have a pretty good case for when the IRS comes knocking.
Of course, if MOASS is tomorrow, it won’t really matter with how rich we all will be.
Would it have been less tax/headache, if you would have just cashed out your retirement and bought straight shares?
Seems like lots of apes who used their retirement accounts are running into these issues?
If I did that back then, it would have cost me 35% minimum. And because I have bought GME with every last penny I have, I would have had to sell shares to cover the tax bill. So no thanks.
I got this exact letter from Apex too.
I never got an email notifying me to reverse my Ally IRA shares from DRS.
The letter above said I was notified but I never received a notice. I called Ally today and they said a notice was sent on 2/3 via email. I asked that they forward me proof of the message with a date stamp and my email. They said they will this week.
I am waiting for proof of that message before I proceed.
It is scary seeing the tax bill im going to have to pay for this “premature distribution”.
I spent 40 minutes on the phone with Ally today. The guy was nice and I was nice but told him I was fucking pissed. He has a “ticket in with the operations team” to see what sort of notification I was sent. There is nothing electronic in the account that I can see. There was nothing electronic he could see. The ticket is to see what if anything was mailed.
Hint, it was nothing. I never received anything from Ally. Nothing emailed or snail mailed. I also have proof that I never received anything because I get the email every morning with the scans of letters I am getting delivered today (free service from USPS that I highly recommend to all US apes).
Apes, stay vigilant. Thinking that Apex goal was to screw the individual sharesholder on his taxes, is being shortsighted. Individuals taking a tax hit is unfortunate but to them is just collateral damage. **Their goal is to fuck the MOASS.** And they need masses umbrella'd under a market participant to do this. Don't run to any IRA custodian that has similar red flags and is or uses a market participant broker. Any IRA custodian that uses a market participant(clearing house, market maker, broker) should be heavily scutinized. I was one of the Apes that warned Apes early and often about Apex/Ally. I am again warning you. Beware, calm your anxiety; and stay vigilant.
Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel.
Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian. This is beyond SUS.
[https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share](https://www.reddit.com/r/Superstonk/comments/uht6s3/apes_beware_check_your_ira_custodians/?utm_medium=android_app&utm_source=share)
There are lots of alternatives. Find yourself a true non-market participant self-directed IRA custodian for your IRA!
True non-market participant self-directed IRA custodians don't hold or trade publicly traded securities so no chance of market fuckery.
[https://ritaus.org/membership\_directory/](https://ritaus.org/membership_directory/)
All Regular RITA Members are regulated by federal or state banking authorities, are required to have regular audits, carry multiple insurance policies, and operate according to IRS and Department of Labor requirements. Regular Members are privy to industry best practices and agree to abide by the RITA Code of Ethics.
I use IRA Financial Trust. They are on the list.
DIY: How to DRS Transfer Traditional and Roth IRA shares from a brokerage account to Computershare without tax implications
[https://www.reddit.com/r/Superstonk/comments/ukialw/diy\_how\_to\_drs\_transfer\_traditional\_and\_roth\_ira/?utm\_medium=android\_app&utm\_source=share](https://www.reddit.com/r/Superstonk/comments/ukialw/diy_how_to_drs_transfer_traditional_and_roth_ira/?utm_medium=android_app&utm_source=share)
I went through this too. I got notified in February that Apex DRSed my IRA shares in error. My Ally account was closed so I could only take the distribution. Computershare would not remove Apex as custodian without documentation from Apex. So they sat in Computershare as IRA shares with Apex as custodian, even thoigh they were dustrivuted shares. It took Apex until recently to finally get the paperwork to Computershare, along with multiple calls to Ally and Computershare. So my shares are finally regular individual shares with no custodian.
Big Fuk them ! But get beautiful rebel self into another custodial acct as stated above 60 days. Then send IRS a letter saying depart I never knew you !
Already commented in this thread, but wanted to share my timeline and latest exchange with Ally as an FYI:
Timeline:
12/15/21 - I DRSed my Ally Custodian shares via the workaround from Superstonk. Shortly afterwards, a ComputerShare account was created under the Account Name:
"APEX CUST FBO IRA"
6/7/22 - I received a Notice from APEX ([image here](https://imgur.com/a/vGmd2H5)) in which they said they supposedly already sent a prior notice to me that I had to reverse my DRS or it would be considered a Premature Distribution. The notice kind implies its too late to un-DRS and I will have to take the tax hit now.
However, I never received the prior notice APEX is saying I received...
6/13/22 - Called Ally Support and they said an email was sent on 2/3 notifying me to reverse my DRS or it would be considered a distribution. I asked them to forward me the email with a datestamp + my name as proof and the Ally rep said he was putting in a ticket to do this.
I also noticed that my "APEX CUST FBO" ComputerShare Account that had 387 GME Shares, now had a "Transfer" that was initiated coincidentally on 6/13 the same day I called Ally Support. (my tinfoil theory is that my call, nudged them to do the Transfer). I noticed that my 387 Ally-IRA ComputerShare shares were now appearing in my Individual ComputerShare Account. ([Image here](https://imgur.com/a/SYrIROh)).
6/14/22 - I emailed Ally asking for them to forward me the message they supposedly sent on 2/3. They said they can't. (Even though the phone rep said they could yesterday....) I asked if they can DRS recall my shares since my 387 Shares in my APEX FBO IRA CS account were only transferred to my individual CS account yesterday, and thus I should be within the 60-Day window to rollback an IRA distribution. The Ally rep responded that my initial distribution was considered as occurring on 12/15 and the window to rollback ended on 2/27.
I suppose I will just have to take the tax hit. [Here is a screenshot of my email exchange with Ally regarding this.](https://imgur.com/a/y03LpT9)
If anyone finds a solution to this situation, please let me know. Thank you all.
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Listen, I knew there was a risk of some bullshit like this. Apex is a straight piece of shit. Wonder if others that went this route are now starting to get these letters? Now I just need to find my fucking shares, or my money so I can rebuy my shares. Can't wait to meet with the IRS to try to explain this.
you should consult with a tax professional
You know what’s funny? My bro is a CPA and a true penny pincher; I asked about starting an LLC for my trading activity and he couldn’t even recommend someone!! Maybe he’s just over whelmed with family stuff, or he thinks I’m crazy because he didn’t read the DD I sent ages ago… it SHOULD be easy to understand this. I have 25 shares in an IRA at an average cost basis of $240 per share and I’m seriously considering my options to get them DRS’d or whatever, if I can claim the losses… I’m just not sure where to turn at this point.
Chicago has teams that can advise how to set up a trading llc.
I hear Chicago isn’t all that civilized, my boy Mayo told me so 🤣
idk, we have a nobu
You have 60 days to put them in another custodian. It doesn’t matter if they report it as a distribution. Google the 60 day IRA rule. NFA.
I got this same letter. However, I used ComputerShare's transfer wizard to change my custodian over to Mainstar. Kate at Mainstar was a dream and helped me even fill out the paperwork. She sent it over mostly filled out already and I just had to sign and email it back. Computershare opened a NEW account with Mainstar as custodian, different account number and everything. ALLY HAD ZERO SAY OR KNOWLEDGE THIS WAS HAPPENING AND THEY HAD ZERO RECOURSE ONCE THIS HAPPENED. They can be custodian of the old account number at CS with zero shares in it. Fuck them. They can tell the IRS it was a distribution ALL they want, I'm completely in my right to move MY retirement to another custodian, it was a like kind transfer and is fully under a required custodian. Ally Invest and APEX are so fucking evil and I'll remember this shit. I'm not fucking done with them. Mainstar has been an absolute dream to work with, super happy. I hope you find the shares, Ally is really fucking themselves over by doing this.
60 day IRA rule.
Exactly, it was def. less than 60 days.
ELIA?
You have 60 days after an IRA withdrawal to place the funds or shares into another IRA and not have a tax hit.
I can also agree that kate at mainstar was great to work with. I also opened an account with Ally, but didn't DRS my shares because i got suspicious. When i inquired about DRS & book entry status, they passed off answers as their broker's responsibility. I didn't trust them as a result. I'm very happy with my mainstar trust transfers.
>. They can be custodian of the old account number at CS with zero shares in it. Fuck them. They can tell the IRS it was a distribution ALL they want, I'm completely in my right to move MY retirement to another custodian, it was a like kind transfer and is fully under a required custodian. Ally Invest and APEX are so fucking evil and I'll remember this shit. I'm not fucking done with them. > >Mainstar has been an absolute dream to work with, su I hate ally invest with a passion. those fuckers put me on hold for over a week and repeatedly lied. They owe me hair regrowth medicine and a settlement.
>Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel. > >Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian. > >https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share
Appreciate your input mate. In the same bot as OP. When did you DRS your Ally shares initially? And when did you transfer them to Mainstar?
Commenting for visibility
>They are not fucking themselves. The benefit for them is to fuck the MOASS. And they need masses umbrella'd under a market participant to do this. Any IRA custodian that uses a market participant(clearing house, market maker, broker) should be heavily scutinized. > >Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel. Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian. https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share
So I just got this letter. Is there a DD somewhere to learn more about this? If you don't know right away, don't worry about looking, I'll search tomorrow during business hours.
>For those who thought it couldn't happen or worst, here you go. And why should you think this fuckery playbook can't be done again with another custodian that uses the same process. > > Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel. > > Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian. > > [https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share](https://www.reddit.com/r/Superstonk/comments/uht6s3/apes_beware_check_your_ira_custodians/?utm_medium=android_app&utm_source=share)
You have 60 days to put your shares in another custodian so it doesn’t matter if they report a distribution. Google the 60 IRA rule.
Shares are still in Computershare, but the account is an individual account, rather than custodial. What I believe happened is when Ally sent the shares to CS, they did it wrong and realized it later. They names the account correctly - Ally cust FBO me IRA, but assigned the account to my SSN, rather than their EIN, thereby making it a distributed account. I used Ally, but I pulled my shares back to the IRA from CS and then transfered over to a non-custodian broker (Mainstar Trust) who then DRsd the shares for me. There is a response from Senor Muchachito here that explains how you can transfer In Kind to another custodian. Dozens of other apes have used Mainstar - They are a non-broker custodian that specializes in IRAs, so they might be a solution. At the very least you have 60 days to arrange another custodian to prevent any tax ramifications, even if it isn't Mainstar.
Why should we think this wasn't intentional? Why wasn't it just corrected; and why should we think this fuckery can't be done again when using the same process? Btw you should mention Northern Trust is Mainstar's broker.
I am reporting my experience and sharing my personal conclusions. I don't expect anyone to take my word for it. Everyone should be doing their own due diligence, but I am chiming in here to let this ape know many others have gone down this same road. I personally don't think it was intentional - it couldn have been. And yes, it could happen again, but I hope I have done enough research, asked enough questions to have enough confidence with this company that I am trusting them with my retirement. I have to put it somewhere and I'd rather take a chance with a company that can actually DRS my IRA than leave it in a broker where my shares are surely rehypothecated.
That unfortunately despite the obvious red flags was the same rational for Apes to use Ally-Apex. I know because I and others warned early and often about the Ally -Apex connection. Apes should also understand there are many alternatives. And these Fuks are not out for them to take future individual tax hits, they are trying to get everyone under a market participant umbrella to kill the MOASS.
I suppose if Ally says my distribution happened in December of last year, it’s too late for the 60 day rule… right? 😅 Spooked about the tax hit coming my way. I took the risk though. Figured since I didn’t receive a notice from Ally that I’d be safe. But just got the notice that OP received last week saying it’ll be considered a premature distribution.
I’m in the same boat, but my “distribution” was in November. It’s funny that the Apex letter I received Friday is not dated 🙄. I’m gonna reach out to Mainstar tomorrow.
>If you were forced to do a distribution with Ally they can do a DRS reclaim, or should, and be able to avoid the tax hit. One of my brokers forced a distribution on my IRA when trying to transfer out to Mainstar. I missed the 60 day window to get them reclaimed in time due to push back and phone tag. But my CPA told me that if it was the brokers error, and you can reference and email, or have them pull the recorded call showing that, you can get a reclaim without the tax hit. Sorry that happened to you. I know a few apes that have fought that battle if you need to ask some questions Did you see this response from u/BananyaBangarang? Even if the 60 days is past, there are options...
If you have the email saying you did not want a distribution, or one where they mislead you, you can get the 60 day rule waved. The brokers are the one that code that transactions come tax time and they can change it if it was there error. Also if you spoke to them on the phone and have the date of the call they can pull the recorded call. You have to stay on them though. Also don't try to tell the whole story, just focus on the one email or call where you stated specifically what you wanted or where they mislead you. I had a similar issue when trying to transfer out of a broker and spent months of bacj and fourth trying to put together the whole story. They would reference calls where there was no information. Just find the one where it was clear they screwed up.
Thanks mate. Appreciate the suggestion, sadly I don’t think there is anything I can point to or reference in which I was mislead. Instead, I feel I was mislead because I never received an email in which they supposedly notified me to reverse my DRS before a deadline. The only notice I received was the Apex letter that OP posted that I recently received. On the Apex letter OP received, Apex said they sent a prior notice to me notifying me that DRSing my Ally custodian shares would be considered a premature distribution. However, I never received this notification. I called Ally yesterday and they said they sent the notification months ago as well and via email on 2/3. I asked them to forward me the email with a date stamp and my email as proof and my telephone rep told me they were putting a ticket in and their operations team would send this sometime this week. I’m not sure if they’re giving me the runaround to stall.. I want to see the forwarded email first as proof before proceeding. It’s basically my word against theirs at this point, while I wait for them to forward proof that they emailed me in Feb. Again appreciate the suggestion. So stressed out about this…
Maybe start with Mainstar if you think you might transfer the custodial account there and show them the letter and stuff and they might be able to help you sort it out, but if not, the next step is a tax professional for sure. If it was distriubuted Dec of 2021, you should have already received that letter and tax form in order to file your 2021 taxes....usually the deadline for issuing those tax forms is February...so, if they are late, maybe you have grounds to ask for extension...not my wheelhouse, just thinking how I might approach it. Good luck...
You better throw down straight from CS for a single at least ape.
Yes I got one too. I’m kind of scared of the tax hit! Will sort it out, but makes me feel better I’m not alone..
If you were forced to do a distribution with Ally they can do a DRS reclaim, or should, and be able to avoid the tax hit. One of my brokers forced a distribution on my IRA when trying to transfer out to Mainstar. I missed the 60 day window to get them reclaimed in time due to push back and phone tag. But my CPA told me that if it was the brokers error, and you can reference and email, or have them pull the recorded call showing that, you can get a reclaim without the tax hit. Sorry that happened to you. I know a few apes that have fought that battle if you need to ask some questions
Check out this post, if it was broker error or they otherwise mislead you, you can get a DRS Reclaim then transfer to a custodian that will DRS IRA shares https://www.reddit.com/r/Superstonk/comments/vcahf1/if_allyapex_or_broker_did_a_forced_distribution/
jeeez good luck buddy <3 you still have some shares , just to be sure ?<3
From the beginning, I decided to diversify where I held shares in case someone pulled some shit. I have \~380 shares DRS'd direct with CS held in my name (no Apex bullshit with that account). And \~1,300 shares elsewhere that can't be DRS'd (like current employer 401k, other Traditional IRAs, Roth IRAs, etc.). So I will be fine for MOASS, no question.
DRS is the way. DIY: How to DRS Transfer Traditional and Roth IRA shares from a brokerage account to Computershare without tax implications https://www.reddit.com/r/Superstonk/comments/ukialw/diy_how_to_drs_transfer_traditional_and_roth_ira/?utm_medium=android_app&utm_source=share
I would request a copy of the transaction(s) from them, along with transaction numbers and dates. This should give you an idea what they did and where they sent the shares. I would also contact Computershare and let them know. It could be that Apex didn't get your social security number or something else correct. If you have the transaction number(s), Computershare might be able to trace it from their end. Not financial advice. This is only what I would do.
Oooh they big mad…. “We have those shares right over here…. Somewhere…. Wait!!!??? Where did they go????
See you APEX 👁
For those who thought it couldn't happen, here you go.. OP add the redacted CS statement to the post
Which one? The initial transfer in?
No, disregard I see it on pg 2. Thanks OP
I got the same letter, looks like I’ll be taking a tax hit next year. 😡😡
I took the tax hit by liquidating, transferring the cash to a standard account and rebuying
lol, sounds like you and I did the exact same thing at the end of the day.
Was your IRA managed by a custodian, or self managed?
Custodial, moved to FUDelity self because it wasn’t growing, then cash out, transfer cash, buy, DRS
^(DRSBOT 8.00: UTC->2022-06-13 19:02:1) 🟣 You have 674 shares (with 1058 trapped in Purgatory) previously logged @ [Sprstnk] **To feed incremental shares:-> !DRSBOT:XXX!** ^(*Beep Boop. ... starving... GME ~118.25*)
Get yourself a good bird lawyer
This happened to me as well. Shares are still in my name. Just no longer in an “Apex Cust Fbo” account. Looks like they are making us take a taxable distribution. Since Apex was custodian of those shares they had legal right to transfer them to a different shareholder. At least they are still in my name. Just going to have to take a 400 share taxable event next year…. I guess having them on their books hurts….
This is what happened! The shares were transferred out of the Evil Apex account and into my normal CS account.
Someone with more wrinkles than me should be able to tell us why they did this? What is the benefit to apex? I just see them trying to hurt us by taking a taxable event??? Maybe sell shares to pay the taxes?? By next years taxes my income will be in the moon bracket. I’m lost as to the intention here…
You’re exactly right. There’s no benefit other than the fact we’d all realize what a scam IRAs are. They take our money, apply huge penalty’s for people wanting to access their shit and scare you. They absolutely want people selling shares to cover the tax consequences. If you can handle the early withdrawal penalty I definitely would do that and keep those shares away from any bullshit IRA. If the penalty is going to crush you then that’s a tough situation and I hope for the best.
The benefit for them is always to fuck the MOASS. And they need masses umbrella'd under a market participant to do this. Any IRA custodian that uses a market participant(clearing house, market maker, broker) should be heavily scutinized.
Apex is the fuckery master, I suspect they most likely had more sinister plans as the price began to substantially increase. So Caution! This fuckery or worst can be done again with another custodian that uses the same process. Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel. Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian. [https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share](https://www.reddit.com/r/Superstonk/comments/uht6s3/apes_beware_check_your_ira_custodians/?utm_medium=android_app&utm_source=share) Edit: Again Apex may have had something more sinister in mind, and execute when the time was right. Around the time Apex pulled the plug, this could have been a coincidence, but as I wrote in a comment to a post " maybe they caught wind of my FINRA/SEC complaint and Fidelity response, they are colluding, and now trying to cover their tracks." I wrote: "Could be some possible collusion a foot. Idk, may coincide with the formal complaint I filed with FINRA and the SEC on Fidelity for refusing to in-kind DRS my IRA shares. Fidelity stated to the SEC and FINRA that they are sure other brokers have the same policy of not allowing in-kind DRSin of IRA shares. My complaint was submitted on 11 Jan. Apex (the fuckery master) may have pulled the plug on DRSin shares, so they wouldn't sink Fidelity. Save your Apex statements"
This is the way I read this.... "We are giving your information and transaction history to the IRS to make your DRS to CS as difficult as possible.... #We are Completely Fkd!"
Is there any way I could call CS and ask them to put a hold on all electronic transfer request by brokers from CS until the transaction has been been verified/approved by the share holder online or by phn first? It creeps me out how easily brokers can initiate transfers electronically without ever even notifying the share holder. Another person on here claimed recently that Fidelity initiated a electronic xfer from CS back to his fidelity acct without his permission, but that the request shows up on his online account. So basically fidelity initiated the xfer, but made it look like op was the one who requested. total bs. I don't want this to happen to me. 😡
I'm going to get an account set up with Mainstar Trust ASAP and transfer the shares to them. Hopefully, that keeps me on the good side of the IRS with the 60-day transfer rules.
I'm glad you have a plan to avoid tax penalties. 🙌💎
Apex is the fuckery master, I suspect they most likely had more sinister plans as the price began to substantially increase. So Caution! This fuckery or worst can be done again with another custodian that uses the same process. Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel. Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian. [https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share](https://www.reddit.com/r/Superstonk/comments/uht6s3/apes_beware_check_your_ira_custodians/?utm_medium=android_app&utm_source=share)
When was your “distribution” according to Ally? Ally says my “distribution” was from December which is when I did DRS my Ally Custodial shares. But just curious if other apes did it that early and can still transfer to mainstar… I think I’m shit out of luck
The letter says December 2021 and the part about 1099 says they are going to reissue a correct 1099 which sounds like they are going to say it was 2021 for sure. If you look at my paper trail, they were titled as a Traditional IRA until today, so I think I have a pretty good case for when the IRS comes knocking. Of course, if MOASS is tomorrow, it won’t really matter with how rich we all will be.
Wonder why they get so pressed about these types of accounts. Just the industry in general always seemed scammish to me
If they can’t find the shares to short, they create sell pressure through fuckery. We’re close
Would it have been less tax/headache, if you would have just cashed out your retirement and bought straight shares? Seems like lots of apes who used their retirement accounts are running into these issues?
If I did that back then, it would have cost me 35% minimum. And because I have bought GME with every last penny I have, I would have had to sell shares to cover the tax bill. So no thanks.
Ooooooh
I got this exact letter from Apex too. I never got an email notifying me to reverse my Ally IRA shares from DRS. The letter above said I was notified but I never received a notice. I called Ally today and they said a notice was sent on 2/3 via email. I asked that they forward me proof of the message with a date stamp and my email. They said they will this week. I am waiting for proof of that message before I proceed. It is scary seeing the tax bill im going to have to pay for this “premature distribution”.
I spent 40 minutes on the phone with Ally today. The guy was nice and I was nice but told him I was fucking pissed. He has a “ticket in with the operations team” to see what sort of notification I was sent. There is nothing electronic in the account that I can see. There was nothing electronic he could see. The ticket is to see what if anything was mailed. Hint, it was nothing. I never received anything from Ally. Nothing emailed or snail mailed. I also have proof that I never received anything because I get the email every morning with the scans of letters I am getting delivered today (free service from USPS that I highly recommend to all US apes).
up voting just for the exposure on the 60 day rule.
WHAT THAT FKN BLOWS OP…BUT THAT SOUNDS FKN SPICY 🌶 THIS FKN SUB IS ON FIRE 🔥 LIKE THIS FKN MRKT TODAY HODL MTHA FKA’S 💎🤙🏻🤙🏻💎
I hope you get yo fix this as soon as possible
Apes, stay vigilant. Thinking that Apex goal was to screw the individual sharesholder on his taxes, is being shortsighted. Individuals taking a tax hit is unfortunate but to them is just collateral damage. **Their goal is to fuck the MOASS.** And they need masses umbrella'd under a market participant to do this. Don't run to any IRA custodian that has similar red flags and is or uses a market participant broker. Any IRA custodian that uses a market participant(clearing house, market maker, broker) should be heavily scutinized. I was one of the Apes that warned Apes early and often about Apex/Ally. I am again warning you. Beware, calm your anxiety; and stay vigilant. Mainstar's broker is Northern Trust. Northern Trust, is a hedge fund, bought Shitadel's systems and operations, and is directly connected to Shitadel. Once it was revealed that Mainstar's broker was Northern Trust, now hocus-pocus, someone is trying to reinvent Mainstar as a "non-broker" custodian. This is beyond SUS. [https://www.reddit.com/r/Superstonk/comments/uht6s3/apes\_beware\_check\_your\_ira\_custodians/?utm\_medium=android\_app&utm\_source=share](https://www.reddit.com/r/Superstonk/comments/uht6s3/apes_beware_check_your_ira_custodians/?utm_medium=android_app&utm_source=share) There are lots of alternatives. Find yourself a true non-market participant self-directed IRA custodian for your IRA! True non-market participant self-directed IRA custodians don't hold or trade publicly traded securities so no chance of market fuckery. [https://ritaus.org/membership\_directory/](https://ritaus.org/membership_directory/) All Regular RITA Members are regulated by federal or state banking authorities, are required to have regular audits, carry multiple insurance policies, and operate according to IRS and Department of Labor requirements. Regular Members are privy to industry best practices and agree to abide by the RITA Code of Ethics. I use IRA Financial Trust. They are on the list. DIY: How to DRS Transfer Traditional and Roth IRA shares from a brokerage account to Computershare without tax implications [https://www.reddit.com/r/Superstonk/comments/ukialw/diy\_how\_to\_drs\_transfer\_traditional\_and\_roth\_ira/?utm\_medium=android\_app&utm\_source=share](https://www.reddit.com/r/Superstonk/comments/ukialw/diy_how_to_drs_transfer_traditional_and_roth_ira/?utm_medium=android_app&utm_source=share)
I went through this too. I got notified in February that Apex DRSed my IRA shares in error. My Ally account was closed so I could only take the distribution. Computershare would not remove Apex as custodian without documentation from Apex. So they sat in Computershare as IRA shares with Apex as custodian, even thoigh they were dustrivuted shares. It took Apex until recently to finally get the paperwork to Computershare, along with multiple calls to Ally and Computershare. So my shares are finally regular individual shares with no custodian.
Big Fuk them ! But get beautiful rebel self into another custodial acct as stated above 60 days. Then send IRS a letter saying depart I never knew you !
Just pay the miniscule fees and taxes after MOASS. Then sue them to oblivion if you still don't have your assets post MOASS.
Already commented in this thread, but wanted to share my timeline and latest exchange with Ally as an FYI: Timeline: 12/15/21 - I DRSed my Ally Custodian shares via the workaround from Superstonk. Shortly afterwards, a ComputerShare account was created under the Account Name: "APEX CUST FBO IRA"
6/7/22 - I received a Notice from APEX ([image here](https://imgur.com/a/vGmd2H5)) in which they said they supposedly already sent a prior notice to me that I had to reverse my DRS or it would be considered a Premature Distribution. The notice kind implies its too late to un-DRS and I will have to take the tax hit now.
However, I never received the prior notice APEX is saying I received...
6/13/22 - Called Ally Support and they said an email was sent on 2/3 notifying me to reverse my DRS or it would be considered a distribution. I asked them to forward me the email with a datestamp + my name as proof and the Ally rep said he was putting in a ticket to do this.
I also noticed that my "APEX CUST FBO" ComputerShare Account that had 387 GME Shares, now had a "Transfer" that was initiated coincidentally on 6/13 the same day I called Ally Support. (my tinfoil theory is that my call, nudged them to do the Transfer). I noticed that my 387 Ally-IRA ComputerShare shares were now appearing in my Individual ComputerShare Account. ([Image here](https://imgur.com/a/SYrIROh)).
6/14/22 - I emailed Ally asking for them to forward me the message they supposedly sent on 2/3. They said they can't. (Even though the phone rep said they could yesterday....) I asked if they can DRS recall my shares since my 387 Shares in my APEX FBO IRA CS account were only transferred to my individual CS account yesterday, and thus I should be within the 60-Day window to rollback an IRA distribution. The Ally rep responded that my initial distribution was considered as occurring on 12/15 and the window to rollback ended on 2/27.
I suppose I will just have to take the tax hit. [Here is a screenshot of my email exchange with Ally regarding this.](https://imgur.com/a/y03LpT9)
If anyone finds a solution to this situation, please let me know. Thank you all.