IRS Publication 3125 – If you own an Individual Retirement Arrangement (IRA), especially a self-directed IRA, you’ve probably seen ads promising “IRS-approved” or “IRA-approved” investments. These claims often target high-risk or non-traditional assets like real estate, precious metals, private businesses, or even cryptocurrencies.
IRS Publication 3125 (Revised September 2017) delivers a clear, direct message that remains 100% current in 2026: The IRS does not review, approve, endorse, or recommend any IRA investments.
What Is IRS Publication 3125?
Publication 3125 – “An Important Message for Taxpayers with IRAs – The IRS Does Not Approve IRA Investments” – is a one-page IRS alert designed to protect retirees and savers from fraudulent sales pitches. You can download the official PDF directly from the IRS here: https://www.irs.gov/pub/irs-pdf/p3125.pdf
The IRS continues to list and link to this publication on its official IRA page and forms library in 2026.
The Core Warning: “IRS Approved” or “IRA Approved” Claims Are Always False
Here is the exact example the IRS provides of a fraudulent sales pitch:
“This investment has been approved for your IRA. You can use your IRA for this investment by filling out the forms in the attached information package, and our agent will take care of the rest. This has been reviewed by the government (or IRS). This investment is so safe you can use it for your IRA. Only certain investments are approved for IRAs.”
The IRS explicitly states it does NOT:
- Review or approve any specific investments
- Endorse any investments
- Advise taxpayers on how to invest their IRAs
- Issue any statement that an investment is “protected” simply because the custodian is IRS-approved
The only thing the IRS approves is the custodian or trustee (bank, trust company, or brokerage) for administrative compliance — never the underlying investment itself.
9 Proven Ways to Protect Yourself (Direct from Pub 3125 + Current Best Practices)
- Never fall for “IRA Approved” or “IRS Approved” marketing.
- Be extra cautious during tax season when scam volume spikes.
- Ignore TV infomercials or radio ads promising sky-high returns with “no risk.”
- Never roll over or transfer your IRA directly to an investment promoter.
- Exercise caution with “general partnerships” or “limited liability companies.”
- Do not assume an investment is safe just because a bank or trust company acts as custodian.
- Always verify the promoter and investment with your state securities regulator.
- Educate yourself with official IRS resources (Publication 590-A & 590-B).
- If it sounds too good to be true — it is.
What Should You Do If You Receive a Suspicious Promotion?
Contact any of these trusted agencies immediately:
- Federal Trade Commission → 877-FTC-HELP (382-4357) | www.ftc.gov
- Securities and Exchange Commission → 800-SEC-0330 | www.sec.gov
- Your state securities regulator (find via NASAA.org)
Report the incident to the IRS by forwarding suspicious emails to [email protected].
Why This Warning Matters More Than Ever in 2026?
Self-directed IRAs have exploded in popularity, allowing alternative investments. Scammers exploit this freedom. The IRS’s “Dirty Dozen” scam lists continue to highlight retirement-account fraud, including abusive trusts and offshore schemes that target IRA holders.
Take Action Today
- Download and read IRS Publication 3125 (it takes 2 minutes).
- Review your IRA custodian’s approved investment list.
- Consult a fiduciary financial advisor or tax professional before any non-traditional IRA investment.
- Bookmark the official IRS IRA page: https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras
Your retirement savings are too important to risk on false “IRS-approved” claims. The IRS has spoken clearly since 2017 — and the message hasn’t changed: The IRS does not approve IRA investments.
Stay safe, stay informed, and keep your retirement on the right track.
Related IRS Resources
- Publication 590-A: Contributions to IRAs
- Publication 590-B: Distributions from IRAs
- Full list of IRS-approved IRA custodians (search “IRA custodian list” on IRS.gov)
Have questions about your IRA investments? Leave a comment below or consult a qualified tax professional. Always verify information directly from IRS.gov.