Roth IRA Rules - Roth IRA Retirement Planning
In this section, we look at the general rules that apply to both the traditional IRAs and the Roth IRA.
1) Restricted Transactions
You are not allowed to perform all of these following transactions under both the traditional and the Roth IRA.
2) Cash Only IRA
Any payments or contributions you make towards an IRA must be in cash. You are not permitted to contribute to an IRA in the form of stock holdings or bonds. This applies only to IRA contributions and NOT IRA Rollovers or Conversions.
3) Custodial or Trust IRA Accounts
Your IRA (Individual Retirement Account) must be held as a trust or custodial account at any of the following holdings:
4) Timing Differences
Contributions or payments towards an IRA must be made from the first day of the calendar year till the day you file your income tax return - there are no extensions. For example, if you file your income tax return on April 30th, then you can make IRA contributions from January 1st to April 30th of the year ONLY (if April 30th is a holiday, then the deadline is the first business day after April 30th).
Here are a few reminders about IRA contribution timings and rules: