Individual retirement account

An individual retirement account or IRA is a form of "individual retirement plan". It is simply a savings account with large tax advantages. An IRA is not itself an investment. It is where an investor keeps assets such as stocks, bonds and mutual funds. A 401(k) is set up by an employer, but an IRA may be started by an individual. Other IRAs may be opened by small business owners and those who are self-employed.
Types of IRAs.
There are different types of IRAs: Traditional IRAs, Roth IRAs, SEP-IRAs and SIMPLE IRAs. They vary as to tax filing status. Also they have different rules and s. 
Prohibited asset types.
Internal Revenue Code Section 408 prohibits IRA investments in life insurance and in collectibles such as artwork, rugs, antiques, metals (there are exceptions for certain kinds of bullion), gems, stamps, coins, alcoholic beverages, and certain other tangible personal property.
Participant-directed accounts.
A participant-directed account (also called a self-directed IRA) is an IRA which is provided by some financial institutions in the United States. It allows alternative investments for retirement savings. Some examples of such alternative investments are: real estate, private mortgages, private company stock, oil and gas limited partnerships, precious metals, horses, and intellectual property. There is a risk of fraud when investing in Self-Directed retirement accounts.