How You Can Fund a Roth IRA
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How You Can Fund a Roth IRA
An important part of establishing an IRA is having a custodian for the account. A custodian can be a bank, credit union, or other financial institution. The custodian holds the funds that you contribute to your IRA. This is true for any funding vehicle.
Things To Know
- You have many choices of investments to fund a Roth IRA. Here is a list of what is and is not allowed.
You may use the following investments to fund Roth IRAs
- 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 a Roth IRA:
- Cash value life insurance
- Collectibles