Certain assets, including collectibles and life insurance contracts, are not permitted in an IRA. In addition, IRS rules prohibit certain transactions involving the IRA owner and other disqualified persons. These are known as prohibited transactions.

Prohibited transactions generally include certain forms of self-dealing or using IRA assets for the personal benefit of a disqualified person. Violating these rules can result in significant tax consequences and may affect the tax-advantaged status of the IRA.

Account owners are responsible for ensuring their assets and transactions comply with applicable IRS rules. Consult a qualified tax or legal professional when guidance is needed.