How You Can Fund Your IRA
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How You Can Fund Your IRA
IRAs are very flexible and allow many kinds of investments to be held within them. An important part of establishing an IRA is having a custodian for the account. The custodian holds the assets that you contribute.
Things To Know
- Here is a list of what is and is not allowed as a funding vehicle for an IRA.
IRAs may be funded with the following investments:
- Mutual funds
- Zero coupon bonds
- Certificates of deposit
- Common stocks
- Savings accounts
- Unit investment trusts
- Individual retirement annuities
- Money market deposit accounts
- Brokerage accounts
The following investments may not be used to fund an IRA:
- Cash value life insurance
- Collectibles
The rules for funding an IRA are fairly straightforward. Each custodian will give you a list of investments that they can hold for you.