The IRA was intended to be a way for people to save for their retirement.

It was not intended to be a tax shelter for the mega rich to accummulate $100 million retirement accounts by under-reporting what was being deposited and then using insider trading information to blow up the account to 9 digits, beating the market by oh about 100 times.

And its silly to say that if the IRS hasn’t shut it down, it must be legal. They have a tendency to make retroactive rulings on tax cheats.