Limitations Imposed On IRA Investments

There are limitations on IRA investments.

Assets Not Allowed:

  • Life insurance contracts
  • Commingling of funds
  • Some collectibles

Examples of Prohibited Transactions:

  • Borrowing money from your IRA
  • Selling property to your IRA
  • Receiving unreasonable compensation for managing your IRA
  • Personally guaranteeing a loan for your IRA
  • Buying property for personal use
Exclusive benefit

The IRA is established for the exclusive benefit of the individual and his retirement. Therefore no “self dealing” or dealing with disqualified individual members of your family is allowed: spouse, ancestor, lineal descendant, and any spouse of a lineal descendant. You are building your IRA account for the future and therefore cannot benefit from the investments now.