ABSTRACT
Individual Retirement Arrangements (IRAs) were enacted into law in 1974 as part of the Employee Retirement Income Security Act of 1974 (ERISA). Since the enactment of ERISA, there have been numerous changes in the statutory scheme relating to IRAs, and further changes to the existing provisions are currently being considered. Special rules apply for spousal IRAs as well as IRAs for certain divorced individuals. IRA funds can be invested in stocks, bonds, mutual funds, annuities, endowment contracts, savings accounts, certificates of deposit, participations in common trust funds, and real estate. Many insurance companies offer IRA variable rate annuity contracts which can be funded through different types of investment funds established by the company. Many securities firms have sought and obtained approval from the IRS to act as custodians of IRAs. Such firms have been and continue to be intricately involved in the marketing of self-directed IRAs.
