Changes

The Roth IRA is basically a contract between the taxpayer and a custodian (such as a bank, stock broker or insurance company.)  In most cases, the contract is signed as a part of the paperwork in opening the account.  Although some bloggers have advocated creating your own corporation to serve as the custodian or to invest in collectables, the Internal Revenue Code and Treasury regulations restrict who can serve as a custodian and what types of assets can be placed in a Roth IRA. A non-bank trustee or custodian must obtain the prior written approval of the IRS before opening Roth IRA or other such accounts, and the IRS publishes a list of approved non-bank trustees or custodians.<ref>{{cite web|url=https://www.irs.gov/Retirement-Plans/Approved-Nonbank-Trustees-and-Custodians|title=Approved Nonbank Trustees and Custodians|accessdate=March 28, 2016}}</ref>

The Roth IRA is basically a contract between the taxpayer and a custodian (such as a bank, stock broker or insurance company.)  In most cases, the contract is signed as a part of the paperwork in opening the account.  Although some bloggers have advocated creating your own corporation to serve as the custodian or to invest in collectables, the Internal Revenue Code and Treasury regulations restrict who can serve as a custodian and what types of assets can be placed in a Roth IRA. A non-bank trustee or custodian must obtain the prior written approval of the IRS before opening Roth IRA or other such accounts, and the IRS publishes a list of approved non-bank trustees or custodians.<ref>{{cite web|url=https://www.irs.gov/Retirement-Plans/Approved-Nonbank-Trustees-and-Custodians|title=Approved Nonbank Trustees and Custodians|accessdate=March 28, 2016}}</ref>

Roth IRAs can be contain [[investment]]s in [[securities]], most often [[common stock]]s and [[bond]]s, typically through [[mutual fund]]s. Roth IRAs also, less commonly, allow other investments, including [[real estate]], [[derivative]]s, notes, [[certificates of deposit]], and  are possible). Roth IRAs also allow [[annuity|annuities]] bought from a [[life insurance]] company.  In addition, under Internal Revenue Code Section 408(m)

Roth IRAs can be contain [[investment]]s in [[securities]], most often [[common stock]]s and [[bond]]s, typically through [[mutual fund]]s. Roth IRAs also, although less commonly, allow other investments including [[real estate]], [[derivative]]s, notes, and [[certificates of deposit]]. Roth IRAs also allow [[annuity|annuities]] bought from a [[life insurance]] company.  In addition, under Internal Revenue Code Section 408(m), both participant-directed accounts and IRAs '''cannot''' invest in collectibles, such as art, antiques, gems, coins, or alcoholic beverages, and they can invest in certain precious metals only if they meet specific requirements.

, both participant-directed accounts and IRAs '''cannot''' invest in collectibles, such as art, antiques, gems, coins, or alcoholic beverages, and they can invest in certain precious metals only if they meet specific requirements.

==Further reading==

==Further reading==

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