How do shares of a REIT impact IRA contributions?

Shares of a Real Estate Investment Trust (REIT) can indeed be held in an Individual Retirement Account (IRA), making this answer the most accurate. Including REITs in an IRA allows investors to diversify their portfolios by adding real estate exposure without having to directly purchase property. The dividends generated from REITs can also be reinvested tax-deferred within the IRA, enhancing potential growth.

REITs are designed to be accessible to a wide range of investors, not limited to accredited investors only, which distinguishes them from certain other investments that have restrictions. Additionally, while fees may vary between different REITs, their inclusion in an IRA does not inherently mean they are subject to high fees. Thus, the focus of this question is on their eligibility for IRAs, affirming that shares of REITs can be a viable option within these retirement accounts.