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Author: TMFOwl One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Question about Roth IRA Date: 1/2/2000 1:08 AM
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I understand there is a rule that no portion of a Roth IRA may be invested in life insurance contracts.

Suppose a company whose stock you buy owns part interest in an insurance company?

In this regard, should people who have Roth IRAs be concerned about every investment made, no matter how small, by the (prospective) companies they own in the Roth?
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17219 of 75340
Subject: Re: Question about Roth IRA Date: 1/2/2000 10:11 AM
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TMF Owl writes:

<<I understand there is a rule that no portion of a Roth IRA may be invested in life insurance contracts.>>

That is correct. Life insurance along with collectibles like art, antiques, gems,etc, and investments in prohibited transactions like the purchase of stock in a personally owned company are not allowed in an IRA.

<<Suppose a company whose stock you buy owns part interest in an insurance company?

In this regard, should people who have Roth IRAs be concerned about every investment made, no matter how small, by the (prospective) companies they own in the Roth?>>


That's not an investment in life insurance policies, it's an investment in the stock of a company that holds an interest in a company that markets life insurance. Whether ownership in the life insurance company is held directly or indirectly through another company makes no difference. The investment is in the securities of that company, not the life insurance coverage. Thus, it's a permissible investment.

Regards..Pixy

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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17220 of 75340
Subject: Re: Question about Roth IRA Date: 1/2/2000 10:29 AM
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I understand there is a rule that no portion of a Roth IRA may be invested in life insurance contracts.

Suppose a company whose stock you buy owns part interest in an insurance company?

In this regard, should people who have Roth IRAs be concerned about every investment made, no matter how small, by the (prospective) companies they own in
the Roth?


I think you can buy the stock of an insurance company. See
http://www.irs.ustreas.gov/forms_pubs/pubs/p5900109.htm for what you can not due in an IRA.

However, I do not see your questioned answered directly.

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