Can I hold non-dollar currencies in my retirement fund?

By Denise Appleby AAA
A:



Yes. You would need to find a financial institution that can facilitate these currencies in a retirement account. Many are unable to do so, as their systems are not programmed to perform the currency conversion necessary to satisfy IRS tax reporting requirements, which must be done in U.S. dollars.

To learn more, see Wading Into The Currency Market.

Question answered by Denise Appleby, CISP, CRC, CRPS, CRSP, APA



RELATED FAQS

  1. Why were 401(k) plans created?

    Discover why consultant Ted Benna created 401(k) plans after noticing the Revenue Act of 1978 could be used to set up simple, ...
  2. What is the penalty for taking money out of my 401(k) before I'm 59 years old?

    Learn why withdrawing from a 401(k) plan before age 59 carries an extra 10 percent tax penalty. Only a few circumstances ...
  3. Can I still set up an SEP if one of my employees refuses to participate?

    You can establish the SEP IRA, even if the employee refuses to participant. However, you would need to establish an IRA for ...
  4. I want to close my IRA account. What percentage will I lose to tax?

    You can move the amount by means of a trustee-to-trustee transfer to another IRA, or roll over the amount to your 401(k). ...
RELATED TERMS
  1. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  2. Death Master File (DMF)

    Also known as Social Security Death Index. A list of people whose ...
  3. Stretch IRA

    An estate planning concept that is applied to extend the financial ...
  4. IRA Transfer

    The transfer of funds from an Individual Retirement Account (IRA) ...
  5. IRA Asset Will

    A document that specifies how the assets in an individual retirement ...
  6. Pay As You Go Pension Plan

    A retirement scheme where the plan beneficiaries decide how much ...
Related Articles
  1. Don't Pick The Wrong Type Of Retirement ...
    Retirement

    Don't Pick The Wrong Type Of Retirement ...

  2. Self-Employed? Top Plans For Retirement ...
    Retirement

    Self-Employed? Top Plans For Retirement ...

  3. The Best Way To Build Your Retirement ...
    Retirement

    The Best Way To Build Your Retirement ...

  4. Could Being A Landlord Pay For Your ...
    Retirement

    Could Being A Landlord Pay For Your ...

  5. Smart Retirement Strategies Even Without ...
    Retirement

    Smart Retirement Strategies Even Without ...

Trading Center