Retirement » 6 Surprising IRA Investment OptionsCheck out collectibles first7 of 8Find the best CD IRA yieldBefore doing anything exotic with your IRA, make sure it's allowed by the IRS -- many investments aren't. Generally, it bars investment in what's known as collectibles. These include artworks, antiques, stamps, gems and any coins that aren't specifically allowed. Forget investing in a vintage bottle of Bordeaux as well: Alcoholic beverages are excluded as an IRA investment.If your traditional IRA invests in collectibles, "the amount invested is considered distributed to you in the year invested," according to IRS guidelines. Translation: It's taxable. Furthermore: "You may have to pay the 10 percent additional tax on early distributions," the IRS warns.An authoritative source on IRA tax guidelines is IRS Publication 590.More On IRAs:How to avoid 8 IRA mistakesIRAs more than retirement savingsBasics of IRAsFund your 401(k) or IRA first?6 surprising IRA investment optionsVideo: How to invest in a Roth IRAVideo: Fund IRA or 401(k) first?Create a news alert for "retirement"
Retirement » 6 Surprising IRA Investment Options
Before doing anything exotic with your IRA, make sure it's allowed by the IRS -- many investments aren't. Generally, it bars investment in what's known as collectibles. These include artworks, antiques, stamps, gems and any coins that aren't specifically allowed. Forget investing in a vintage bottle of Bordeaux as well: Alcoholic beverages are excluded as an IRA investment.
If your traditional IRA invests in collectibles, "the amount invested is considered distributed to you in the year invested," according to IRS guidelines. Translation: It's taxable. Furthermore: "You may have to pay the 10 percent additional tax on early distributions," the IRS warns.
An authoritative source on IRA tax guidelines is IRS Publication 590.
More On IRAs:
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
