LendingClub Offers No-Fee IRA

Speaking of LendingClub, I saw that they now offer a IRA with no opening fees and no annual maintenance fees. Previously, there was a $250 annual fee. However, it does now require an increased $15,000 minimum opening balance, which essentially restricts it to a 401k rollover or the transfer of existing IRA funds.

Since P2P loan interest is taxed at ordinary income rates like interest from savings accounts, the ability to place them in a tax-deferred account is attractive. But since person-to-person lending is such a new asset class, I would hesitate to make it larger than say 5% of my portfolio, which would require a total portfolio size of $300,000. So, I’m out.

It is interesting that the custodian EntrustCAMA allows a lot of options in their Self-Directed IRAs like holding physical precious metals, investing in private small businesses, and investing directly in real estate. I’m not sure if you can only hold LC notes in this free IRA.


  1. It is good to see that LC is thinking long term. This allows me to consider P2P lending as a more secure option as an alternative asset class within my overall portfolio. In my case, I have about a 38 yr time horizon before retirement and I’m two years in. What would you consider an appropriate asset class % for Lending Club? For me specifically, I am an aggressive-moderate when it comes to risk. I would love to see a post on your thoughts on this as well.


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