can i pick my own stocks in an ira

Can I pick my own stocks in an IRA?

Short answer: Yes — in most brokerage IRAs and many self‑directed IRAs you can pick and hold individual stocks. This article explains how that works, which IRA types and custodians allow stock ownership, important custodial limits and prohibited activities, tax and withdrawal rules to watch, practical steps to buy and hold stocks inside an IRA, and alternatives if you prefer a lower‑maintenance approach. The content is beginner‑friendly, neutral, and points readers to Bitget when discussing crypto custody and Web3 wallet options.

Quick answer

Yes — in most IRAs you can choose and hold individual U.S. (and often non‑U.S.) stocks, but the ability to act depends on the IRA type, the custodian/provider, and rules about prohibited transactions and certain trading strategies. For crypto and Web3 assets inside retirement accounts, specialized custodians and wallets (for example, Bitget Wallet under Bitget custody solutions) are commonly used.

Types of IRAs and how they affect investment choices

Traditional and Roth IRAs

Traditional and Roth IRAs held at a brokerage custodian are the most common way individuals buy stocks inside tax‑advantaged accounts. With these accounts you can typically buy and sell individual stocks, ETFs, and mutual funds on the broker’s platform. The investment mechanics are the same for stocks inside a brokerage IRA as in a taxable brokerage account, except for tax treatment: traditional IRAs provide tax‑deferred growth with taxes due on withdrawals, while Roth IRAs grow tax‑free and qualified withdrawals are tax‑free.

When you ask “can i pick my own stocks in an ira” in the context of a Traditional or Roth IRA, the practical answer is usually yes — subject to the custodian’s trading platform, eligible securities list, and any account‑level constraints.

SEP and SIMPLE IRAs

Employer‑sponsored IRAs like SEP and SIMPLE IRAs are often custodial accounts at financial institutions. Whether you can pick your own stocks depends on the plan’s setup and the custodian. Some employers use custodians that offer full brokerage menus, allowing participants to pick individual stocks, while other plans restrict investments to a set of mutual funds or an investment menu selected by the employer.

If you’re in a SEP or SIMPLE IRA and want to pick individual stocks, confirm the custodian’s investment options and whether the plan document permits participant control over investments.

Self‑directed IRAs (SDIRAs)

A self‑directed IRA expands the set of permitted investments beyond typical brokerage securities to include alternative assets such as real estate, private placements, promissory notes, and — with specialized custodians — certain crypto assets. SDIRAs are useful when you want to hold niche or private investments that typical brokers do not support.

SDIRAs work through specialized custodians that handle non‑standard asset custody and reporting. The custodian’s policies, fees, and operational requirements vary widely, and SDIRAs carry extra compliance responsibilities for the account owner (such as avoiding prohibited transactions). If you want direct checkbook control, an IRA LLC structure (sometimes called a checkbook IRA) is an option, but it adds legal and administrative complexity.

How you actually pick and hold stocks in an IRA

Brokerage‑style IRA (standard custodian)

To pick and hold stocks inside a typical brokerage IRA you:

• Open an IRA account at a broker that offers IRAs (common providers include full‑service brokers and online discount brokers).
• Fund the account via contributions, transfers, or rollovers.
• Use the broker’s trading platform to place buy and sell orders for eligible stocks, ETFs, and funds.

Brokers provide order types, research tools, and sometimes zero‑commission trading for listed U.S. equities. Brokers also handle recordkeeping, tax reporting, and custody of the IRA assets — the assets are owned by the IRA, not by you personally. When evaluating brokers, consider their trading costs, research tools, options approval levels, customer service, and whether they allow the specific securities you want to hold inside an IRA.

If you’re wondering “can i pick my own stocks in an ira” and you prefer a simple user experience, a brokerage IRA with an intuitive trading platform is the easiest route.

Self‑directed IRA and IRA LLC (checkbook control)

With a self‑directed IRA (SDIRA) you can broaden the investment menu to include private equity, real estate, and, with qualified custodians, certain cryptocurrencies. The IRA LLC structure establishes an LLC owned by the IRA; the IRA owns the LLC, and you (or a manager) control the LLC’s bank account and investment decisions. This offers faster execution and more direct control, but:

• Administrative duties increase (annual valuations, documentation, and custodian reporting).
• Legal and setup costs can be significant.
• Prohibited transactions carry severe tax consequences if rules are violated.

SDIRAs and checkbook IRAs are powerful for holding non‑standard assets, but they require careful setup and ongoing compliance oversight.

Custodian/agent role

The IRA custodian holds legal title to the IRA’s assets and performs recordkeeping and tax reporting. You direct investment choices subject to the custodian’s eligible investment list and policies. Custodians vary in what they will accept and how they process transactions — for example, some custodians will not accept closely held private placements, while others specialize in alternative assets. Even if you choose investments, the custodian must facilitate custody and reporting, and you cannot personally take possession of IRA assets without triggering taxable events.

Custodial limits and prohibited activities

Prohibited transactions and disqualified persons

Federal tax rules prohibit certain transactions between an IRA and a “disqualified person” (including you, certain family members, and entities you control). Typical prohibited transactions include selling property to your IRA, using IRA assets as security for a loan, or otherwise engaging in self‑dealing. If a prohibited transaction occurs, the IRA can lose its tax‑advantaged status, triggering immediate taxation and potential penalties.

Because these rules are complex, it’s critical to consult the custodian and a tax or legal advisor before engaging in transactions that might involve related parties or personal benefit.

Margin, short selling, and restricted strategies

IRAs generally cannot borrow money or use margin in the way taxable brokerage accounts can; borrowing against IRA assets typically triggers prohibited transaction rules. Margin trading that requires the IRA to borrow is usually disallowed. Short selling can be limited or disallowed because of margin and borrowing requirements. Some brokers offer limited short strategies using cash‑covered positions, but this is broker‑dependent and often restricted.

Keep in mind that brokers may have their own policies limiting leverage or complex strategies inside retirement accounts.

Option trading in IRAs

Some custodians permit certain options strategies inside IRAs, usually limited to conservative strategies such as covered calls and cash‑secured puts. Options approval levels and required permissions vary by broker; you typically need to apply for options trading and meet margin‑equivalent requirements (even if no margin is used). Complex or high‑risk strategies like uncovered calls or spreads requiring margin are often restricted.

Tax, contribution, and withdrawal rules that matter

Contribution limits and eligibility

IRAs have annual contribution limits and eligibility rules (including income phases for Roth contributions and age/earned income requirements). For planning purposes, always check the current IRS limits and your custodian’s guidance before contributing or making rollovers. If you exceed contribution limits or make an ineligible contribution, penalties and corrective steps may apply.

Tax treatment of gains, dividends, and distributions

Stocks held inside an IRA benefit from tax‑advantaged treatment. In a traditional IRA, earnings (capital gains and dividends) grow tax‑deferred — you pay ordinary income tax on distributions. In a Roth IRA, qualified distributions are tax‑free, and earnings grow tax‑free if holding and withdrawal rules are met. Importantly, gains and dividends inside the IRA are not reported annually on your personal tax return; the custodian reports distributions when they occur.

Withdrawals, penalties, and required minimum distributions (RMDs)

Withdrawals from IRAs can trigger taxes and penalties depending on the account type, age, and circumstances. Early withdrawals (before the applicable age threshold) may incur penalties, though exceptions exist for specific circumstances. RMD rules apply to traditional IRAs (age thresholds and exemptions vary over time), while Roth IRAs held in your name typically do not require RMDs during the original owner’s lifetime. Because RMDs may force sales of IRA‑held investments to generate cash for distribution, plan your holdings and liquidity needs accordingly.

Investing considerations and best practices when holding stocks in an IRA

Asset allocation and diversification

Holding individual stocks inside an IRA is fine, but concentration risk is real. Diversification across sectors, geographies, and asset classes helps manage risk. If you want stock exposure but prefer diversification, ETFs and mutual funds are efficient ways to get broad market exposure inside an IRA without buying many individual names. Match your allocation to your retirement time horizon, risk tolerance, and overall net worth.

Active trading vs. long‑term investing

IRAs are designed for retirement saving, and long‑term investing tends to align with that goal. Frequent active trading inside an IRA is allowed by many brokers, but it can increase transaction costs and behavioral mistakes. Short‑term trading does not create different tax consequences inside the IRA — gains are not taxed annually — but frequent trading may erode savings through fees, poor timing, and emotional decisions. If you prefer active management, ensure your strategy fits account fees and your retirement timeline.

Fees, commissions, and platform services

When picking a custodian, consider commission fees (many brokers offer commission‑free trading for U.S. equities), account maintenance fees, and fees for alternative asset custody. SDIRAs often charge setup fees, transaction fees, and custody or valuation fees for non‑standard assets. For crypto custody inside IRAs, specialized custodians or exchanges that offer institutional custody may charge additional custody or insurance fees — for Web3 assets, Bitget Wallet and Bitget custody services are positioned as an integrated solution. Compare total cost of ownership across custodians, because fees compound over long holding periods.

Choosing a custodian or platform

When selecting a provider, evaluate these criteria:

• Investment menu: Are individual stocks, ETFs, mutual funds, and (if needed) alternatives supported?
• Fees: Trading costs, custody fees for alternatives, account maintenance, and inactivity fees.
• Trading tools and research: Order types, mobile/desktop platforms, research, and educational materials.
• Options approval and restrictions: If you plan options trading, confirm available strategies.
• Crypto & alternative custody: If you want crypto in an IRA, prefer custodians offering compliant custody — Bitget Wallet and Bitget custody solutions are notable options for self‑custody and custodial services within Web3.
• Customer service and operational reliability.

Mainstream custodians (for brokerage IRAs) offer deep trading and research tools. Specialized SDIRA custodians support alternatives, with higher administrative overhead. Ask prospective custodians about their support for the specific securities or asset categories you plan to hold.

How to get started — step‑by‑step

Practical checklist to pick and hold stocks in an IRA:

1. Decide the IRA type (Traditional vs Roth vs SEP/SIMPLE vs SDIRA) based on tax needs and employer plan structure.
2. Choose a custodian or platform that supports the investments you want (stocks, ETFs, alternatives, crypto custody via Bitget if applicable).
3. Open the IRA account and complete identity verification and any custodian‑required paperwork.
4. Fund the account via contribution, transfer, or rollover (observe contribution limits and eligibility rules).
5. If using a brokerage IRA: search for stocks, place orders, and confirm execution. If using an SDIRA: follow the custodian’s procedures for documenting alternative asset purchases.
6. Keep records of transactions, valuations for non‑public assets, and any custodian correspondence. Schedule regular rebalancing and reviews aligned to retirement goals.

Common pitfalls and compliance issues

Frequent mistakes to avoid:

• Engaging in prohibited transactions or dealing with disqualified persons without advice.
• Using IRA funds for personal benefit or mixing personal and IRA accounts (this can trigger disqualification).
• Failing to confirm custodian acceptance of non‑standard assets (private placements, certain cryptocurrencies) before attempting to purchase.
• Under‑documenting alternative investments in SDIRAs — valuations and custodial paperwork are essential.
• Overconcentration in a single stock or failing to maintain liquidity to satisfy RMDs or expected withdrawals.

To avoid these pitfalls, maintain clear separation between personal and IRA activities and consult your custodian or a qualified tax advisor when in doubt.

Alternatives to picking individual stocks in an IRA

If selecting individual stocks feels too time‑intensive or risky, consider:

• ETFs for diversified equity or fixed‑income exposure.
• Mutual funds (active or index) for professional management.
• Target‑date funds that automatically adjust allocation over time.
• Robo‑advisors inside an IRA for automated portfolio management and rebalancing.

These options reduce the need to research and manage many individual positions while still allowing tax‑advantaged retirement growth.

Frequently asked questions (FAQ)

Can I buy crypto in an IRA?

Short answer: Possibly, but only through custodians that support crypto custody inside IRAs or through crypto‑focused SDIRAs. If you plan to hold crypto inside an IRA, choose a custodian that supports compliant custody and documentation. Bitget Wallet and Bitget custody solutions are examples of Web3‑focused custody options that some investors use for compliant storage of crypto assets in retirement structures.

Can I trade options in an IRA?

Some custodians allow limited options strategies in IRAs (e.g., covered calls, cash‑secured puts). Approval and permitted strategies vary by broker — contact the custodian and apply for the required trading level.

Are wash sale rules relevant to IRAs?

Wash sale rules (which disallow tax losses on sales followed by substantially identical purchases within 30 days) apply to taxable accounts. Losses inside IRAs are not currently deductible, and wash sale rules don’t produce a tax benefit inside an IRA. However, when trading the same security across taxable and retirement accounts, recordkeeping matters — consult a tax advisor for complex situations.

Can I borrow against my IRA?

Generally no. IRAs cannot be used as collateral for a loan, and borrowing against IRA assets typically triggers prohibited transaction rules and taxation. Exceptions for plan loans exist in some employer‑sponsored plans (like 401(k)s), but not for IRAs.

Further reading and references

For custodian and investor‑education materials, consult the following sources and your chosen custodian for specific and current policies. Note: no external links are included in this article; search the organization name on the web for official guidance.

• Fidelity — IRA investment options and brokerage IRA features.
• Vanguard — IRA investment options and self‑directed investing guidance.
• NerdWallet — Guides on investing in IRAs and picking investments.
• Charles Schwab — Considerations for trading in retirement accounts.
• Investor.gov (SEC) — Guidance on investing on your own and opening brokerage accounts.
• IRA Financial and specialized SDIRA providers — Resources on buying stocks in a self‑directed IRA and IRA LLC structures.
• Bitget — Custody and Web3 wallet solutions for crypto assets inside retirement structures.

As of 2026-01-18, according to Fidelity's investor education materials, brokerage IRAs remain the most common method for holding individual stocks in retirement accounts and brokerage platforms continue to expand zero‑commission trading and research tools for IRA investors.

Practical examples and scenario guidance

Example 1 — You want to hold U.S. large‑cap stocks inside a Roth IRA: Open a Roth IRA at a brokerage that offers stock trading, fund the account (subject to contribution limits), and buy the desired listed shares. You keep ownership within the IRA and follow Roth holding rules for tax‑free qualified distributions.

Example 2 — You want to hold a private startup or real estate inside an IRA: Set up a self‑directed IRA with a specialized custodian that supports alternative assets (or structure an IRA LLC). Expect higher administrative fees, valuation requirements, and strict avoidance of prohibited transactions.

Example 3 — You want crypto exposure inside an IRA: Use an IRA custodian that supports crypto custody or an SDIRA custodian that allows crypto purchases. Bitget Wallet can be used as a Web3 wallet option where compatible with the custodian’s custody procedures; ensure the custodian documents transactions and custody to maintain tax‑advantaged status.

Common documentation and recordkeeping notes

Maintain clear documentation of:

• Account opening forms and custodian agreements.
• Transaction confirmations and trade history for IRA purchases and sales.
• Valuations and transfer documents for alternative assets and private placements.
• Correspondence with the custodian about any special custody arrangements (for example, crypto custody with Bitget Wallet).

Good recordkeeping supports correct tax reporting and helps in case of audits or custodian inquiries.

Closing thoughts — next steps

If you’re still asking “can i pick my own stocks in an ira,” remember that most brokerage IRAs will let you buy individual stocks; SDIRAs expand possibilities but add complexity. Start by choosing the IRA type that matches your tax goals, then pick a custodian whose investment menu and fees align with your needs. For crypto and Web3 assets, consider custodians and wallets designed for compliant custody — Bitget Wallet and Bitget custody services are positioned to support Web3 asset custody when used with the appropriate IRA custodian. Always verify current contribution limits, RMD rules, and custodian policies, and consult a tax or financial advisor for personalized guidance.

Ready to explore custody and trading tools? Consider opening an IRA at a custodian that matches your desired investments, and if crypto is part of your plan, evaluate Bitget Wallet and Bitget custody options for compliant storage. For step‑by‑step help, contact your chosen custodian or a qualified advisor.