Were you counting on these assets? Make sure they are protected!
Individual Retirement Accounts (IRAs) are appealing to most Americans since they will be able to hold a larger number of assets inside them when compared to other types of retirement plans such as 401(k), 403(b), or employer-sponsored plans. What is most appealing is the fact that most types of investments are allowed inside IRAs (be they traditional, Roth, or self-directed), which includes bonds, stocks, unit investment trusts (UITs), exchange-traded funds (ETFs), mutual funds, and even real estate!
However, if you could have any type of asset, then most people would give up on other forms of retirement plans, so it is normal that these IRAs are known to have some prohibited investments that will not be taken as assets inside the account. There are several types of investment vehicles that are banned from being hosted in an IRA, and we have talked with the experts about which ones these are.
If you are looking into an IRA or you are planning on changing from another retirement plan to an IRA, make sure you read all about these 5 prohibited items before you make your choice!
Did you know about them? Let us know in the comments below!