Almost any type of investment within an individual retirement account (IRA) is allowed, including stocks, bonds, mutual funds, annuities, unit investment trusts (ITU), exchange-traded funds (ETFs), and even real estate. IRA trustees are allowed to impose additional restrictions on investments. For example, due to administrative burdens, many IRA trustees don't allow IRA owners to invest IRA funds in real estate. The IRA law doesn't prohibit investing in real estate, but trustees aren't required to offer real estate as an option.
A requalification allows you to treat a regular contribution made to a Roth IRA or a traditional IRA as if it had been made to another type of IRA. IRA investments in other unconventional assets, such as limited liability companies and real estate, risk disqualifying the IRA due to prohibited transaction rules that prohibit self-trading.