The actual money must be present in the IRA accounts. Cash, or cash equivalent, is needed to fund IRAs. To transfer any type of asset to another account, money is required. You are allowed to have a few different types of IRAs. You can have both a Roth IRA and a self-directed IRA. You can even transfer money between accounts.

However, there are limits to the amount of money you can put into IRAs. In 2010 there is a limit of $5,000 for those under 50 years of age. People age 50 and older can contribute up to $6,000. That’s the maximum amount people can put into their account each year.

The limit is for the IRA combination. You cannot put $5,000 in one IRA and $5,000 in another. It has to be the $5,000 of the combination between the IRA accounts. So if you have $3,000 in a Traditional IRA, you can only put an additional $2,000 in your other Roth IRA.

Roth IRAs are phased out by income level. Traditional IRAs also have a graduated deductibility limit. The deductibility elimination system is for those who are covered by a work retirement system.

A custodian takes care of the funds that are already inside the IRA. A custodian is the person in charge of the cash. Custodians cannot purchase certain assets, such as collectibles or life insurance policies, for IRA assets.

Trustees are normally run by the IRA. The IRS has given custodians the right to have their own policies. These policies are implemented with the rules imposed by the IRS. Custodians should never advise the account holder on financial matters.

Self-directed IRAs allow their custodians to make non-traditional investments. They may use real estate, for example, or other non-traditional assets. However, self-directed IRAs have rules and regulations and tend to be a bit more complicated than other IRAs. This makes it very important to find professional help with people who know the ins and outs of self-directed IRAs.