There are countless rules and regulations to keep track of in the world of investing. One of those items are the various account types and the associated rules and technicalities for each.

By the time you reach a certain age and/or level of savings, you are very likely to have several unique accounts which might include an after-tax/brokerage account, an Individual Retirement Account (IRA), either pre tax and/or Roth, an employer sponsored retirement account (401k, 403b, 457), a custodial account for your kids, a college savings 529 plan, etc. You get the idea – there are a lot of accounts to keep track of!

I spoke with a client about IRAs this week – namely why they couldn’t see each others under their individual custodial platform log-ins. Let’s look at IRAs and a few things to keep in mind.

IRAs – or Individual Retirement Accounts – were put in place under the US tax code to allow individuals to save additional funds for retirement. These accounts were in response to how US citizens were encouraged to save for retirement in a different way than in the past.

In the mid 1900s, the US retirement system was focused on defined benefit plans (such as pensions). Companies would save on behalf of employees, who would typically spend their careers with one company. Upon retirement, a pension would be provided that would be a consistent amount (the benefit was defined/known).

In the late 1970s, as pensions became less and less common, the US retirement system shifted more towards a defined contribution approach, putting more of the burden on the individual/employee. First, IRAs were put in place, allowing individuals to save on their behalf with some tax advantages. Shortly thereafter, employee-sponsored retirement plans (like 401k) were started, encouraging employers and employees to put a specified amount(ie: defined contribution) into an account for retirement. Both of these accounts are in the names of the individual/employee.

With that background, back to the question at hand. IRAs are by definition individual retirement accounts. As a result, they must be titled in the name of one person and can not be jointly owned or titled, nor can they be titled in the name of an entity like a trust. This rule ties back to their creation, which was to help fund retirement for a single employee/individual as pensions began to fade.

They are retirement accounts and as a result, they require a beneficiary to be listed on the account. For married couples, many will list each other as primary beneficiaries. This will ensure transfer of the assets upon death – but what if you want/need to access your spouse’s retirement account while they are alive (to place a trade, view the account as part of your consolidated portfolio, or just in case they can’t act for themselves?

To have access to an IRA, you need to be granted legal permission by the account holder. Many custodians have forms you can use to obtain view-only access if that is your sole objective. Alternatively, if you need or want a higher level of authority (such as trading or money movement), you can set-up a power of attorney on the account (using either the custodian’s form or submitting your own POA documentations). This will allow you to access the account on behalf of the named individual on the IRA.

Please note the same rules tend to apply to employer sponsored plans (like 401ks, 403bs, etc). Every plan will have their own rules and regulations so be sure to work with your plan sponsor to determine what steps are necessary if you wish for your spouse or someone else to have legal access to your account.