IRA's can be funded with all of the following, EXCEPT:

Prepare for the Louisiana Series 101 Life Insurance Exam with multiple choice questions and detailed explanations. Enhance your knowledge and succeed in your licensing exam!

Multiple Choice

IRA's can be funded with all of the following, EXCEPT:

Explanation:
The key idea is that funding an IRA must come from cash or cash-equivalent sources; you can’t fund an IRA with a life insurance policy. Life insurance cannot be contributed to an IRA, or owned inside an IRA. Cash contributions or funds rolled over from another qualified plan are valid ways to fund an IRA. Within the account, you can hold investments like stocks or real estate (in a self-directed IRA), but the initial funding source must be cash rather than a life insurance policy.

The key idea is that funding an IRA must come from cash or cash-equivalent sources; you can’t fund an IRA with a life insurance policy. Life insurance cannot be contributed to an IRA, or owned inside an IRA. Cash contributions or funds rolled over from another qualified plan are valid ways to fund an IRA. Within the account, you can hold investments like stocks or real estate (in a self-directed IRA), but the initial funding source must be cash rather than a life insurance policy.

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