Which investments are typically prohibited in an IRA?

Investments that are typically prohibited in an IRA include gold and collectibles. The Internal Revenue Service (IRS) has specific guidelines regarding what can be held in an Individual Retirement Account. Gold, while it can be included in certain types of IRAs (like a Gold IRA), is subject to strict rules and is only allowed in the form of certain types of bullion or coins meeting specific standards. On the other hand, collectibles, such as art, antiques, stamps, and coins not meeting the IRS requirements, are not permitted in any type of IRA. This prohibition is in place to prevent the risks associated with collectible investments, which can be highly speculative and illiquid.

Other investment types like stocks, bonds, mutual funds, ETFs, REITs, and real estate are generally allowed in IRAs, provided they fit within the regulations set by the IRS. This flexibility makes IRAs an attractive vehicle for long-term investments, but understanding what is prohibited is crucial for compliance and maximizing your retirement savings.