What are some prohibited investments in a self-directed account?

According to the IRS, investments that cannot be held by any type of Individual Retirement Account include

  • Life insurance policies
  • Collectibles (including works of art, gems, rugs, antiques, stamps and alcoholic beverages)
  • Certain metals and coins (see 26 USC 408[m][3] for some exceptions)
  • Stock in an S corporation (as defined in 26 USC 1361)