SIE Exam Question 58: Answer and Explanation

Question: 58

Contributions made to a traditional or Roth IRA may consist of ___________.

• A. Cash only
• B. Cash or securities
• C. Cash, securities, or fine arts
• D. Securities only

Correct Answer: A

Explanation:

Contributions made to a traditional or Roth IRA may consist of cash only. Securities or fine arts may not be contributed to a traditional or Roth IRA. Any non-cash assets in a non-retirement brokerage account that are to be transferred to a retirement account, must first be liquidated (sold) so they can be transferred in as cash.