What kinds of investments are allowed in a qualified retirement plan, and what kinds are forbidden?

By Denise Appleby AAA
A:

Generally, the permissible investments for qualified plans include publicly-traded securities, real estate, mutual funds and money market funds. Some plans even allow investment of options. To be sure, always refer to the plan document which will provide a description of the investment options under the plan and a description of any restrictions.



For more insight, see the 401(k) and Qualified Plans tutorial.



This question was answered by Denise Appleby
(Contact Denise)



RELATED FAQS

  1. What options strategies are best suited for investing in the aerospace sector?

    Learn how investors profit from volatility in the aerospace sector by employing options strategies, which include the long ...
  2. What options strategies are best suited for investing in the Internet sector?

    Learn how two popular options strategies, the long straddle and the long strangle, enable investors to make money on the ...
  3. How many attempts at the Series 7 exam are permitted?

    The National Association of Securities Dealers (NASD) has not placed any limits on the number of times you can attempt to ...
  4. Places where I can open an IRA Account?

    Open an IRA through brokerage firms, mutual funds, banks and other major financial institutions, or through large Internet ...
RELATED TERMS
  1. Catastrophe Equity Put (CatEPut)

    Catastrophe equity puts are used to ensure that insurance companies ...
  2. Open Trade Equity (OTE)

    Open trade equity (OTE) is the equity in an open futures contract.
  3. Self Invested Personal Pension (SIPP)

    A tax-efficient retirement savings account available in Great ...
  4. Senior Move Manager

    Senior move managers (SMMs) help seniors downsize and relocate ...
  5. Elder Care

    Elder care, sometimes called elderly care, refers to services ...
  6. Eligible Transfer

    An IRS-allowed movement of assets into or out of an individual ...

You May Also Like

Related Articles
  1. Mutual Funds & ETFs

    Should GE Be Part of Your Portfolio?

  2. Retirement

    Top 10 Stocks for Retirement Portfolios

  3. Options & Futures

    Why Is Best Buy Stock So Volatile?

  4. Trading Strategies

    A Guide Of Option Trading Strategies ...

  5. Options & Futures

    Options and Roth IRAs: Do's and Don'ts

Trading Center