How You Can Fund a Roth IRA

An important part of establishing an IRA is having a custodian for the account. A custodian can be a bank, credit union, or other financial institution. The custodian holds the funds that you contribute to your IRA. This is true for any funding vehicle. This fact is especially important to note in the case of coins (such as gold Krugerrands) held in an IRA. The individual does not hold the coins, but the custodian does.

You may use the following investments to fund Roth IRAs:

• Mutual funds
• Zero coupon bonds
• Certificates of deposit
• Common stocks
• Savings accounts
• Unit investment trusts
• Platinum, gold, and silver coins
• Individual retirement annuities
• Money market deposit accounts

Roth IRAs may not be placed into the following investments:

• Cash value life insurance
• Collectibles

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