IRA Contributions

Contributions to IRA’s must be made by April 15th of the following calendar year, regardless of whether or not an extension has been filed by the taxpayer. Contributions may be made between January 1 and April 15 for the previous year, the current year or both. All IRA contributions must be made in cash.

IRA Accounts

All IRA accounts are held in the name of the custodian for the benefit of the account holder. Traditional custodians include banks, broker dealers, and mutual fund companies.

IRA Investments

Individuals who establish IRA’s have a wide variety of investments to choose from when deciding how to invest the funds. Investors should always choose investments that fit their investment objectives. The following is a comparison of allowable and non- allowable investments:

Allowable

Non-Allowable
Stocks Margin Accounts
Bonds Short sales
Mutual Funds Tangibles / Collectibles / Art
ETF / ETNs Speculative option trading
Annuities Term life insurance
UITs Rare coins
Limited Partnerships Real estate
US minted coins

It is Not Wise To Put A Municipal Bond In an IRA

Municipal bonds or municipal bond funds should never be placed in an IRA, because the advantage of those investments is that the interest income is free from federal taxes. Because their interest is free from federal taxes, the interest rate that is offered will be less than the rates offered by other alternatives. The advantage of an IRA is that money is allowed to grow tax deferred, therefore an individual would be better off with a higher yielding taxable bond of the same quality.

How to Pass the Series 62 Exam



Rollover Vs. Transfer

Related Articles
  1. Retirement

    Making Spousal IRA Contributions

    Eligibility requirements, contribution limits and tax deductions all change with one little ring.
  2. Retirement

    11 Things You May Not Know About Your IRA

    These little-known features will help you get the most out of your retirement savings.
  3. Retirement

    Analyzing The Best Retirement Plans And Investment Options: Individual Retirement Accounts (IRAs)

    What they are: An individual savings account with tax incentives. Pros: Tax benefits - investments grow tax-deferred and contributions may be deductible; variety of investment options ...
  4. Retirement

    Which Assets Can You Hold In Your IRA?

    You're not allowed to hold every kind of asset in an IRA. What can you include – and which ones are banned?
  5. Financial Advisor

    7 Top IRA Strategies for Your Clients

    With IRA season in full swing, advisors should consider these seven strategies for clients.
  6. Trading

    House Your Retirement With Self-Directed Real Estate IRAs

    Investors are now able to invest directly in real property, mortgages and other assets.
  7. Retirement

    Roth vs. Traditional IRA: Which Is Right For You?

    To answer this question, you need to consider several of the factors we outline here.
  8. Personal Finance

    How To Correct Ineligible (Excess) IRA Contributions

    Eager to save for retirement? Learn how to avoid overpayment penalties.
  9. Retirement

    Roth IRA Contribution Limits in 2016

    Discover the benefits of Roth IRA accounts and how much you can contribute for your retirement. Learn which IRA plan is best for you.
  10. Retirement

    How to Choose the Best IRA Custodian

    Finding the right custodian for your IRA means determining the sort of IRA you want. Then you can zero in on the ideal institution for the job.
Trading Center