True or False: American Eagle coins, American Eagle Proof coins, and coins issued under state law are the only coins that an IRA or IDA is permitted to invest in.

The statement is true. Individual Retirement Accounts (IRAs) and Individual Development Accounts (IDAs) have specific regulations regarding the types of coins and precious metals that can be included as allowable investments. American Eagle coins, which are struck by the U.S. Mint and contain a specific amount of gold or silver, are widely accepted for such investments due to their recognized value and purity. Additionally, American Eagle Proof coins, which are also produced by the U.S. Mint and feature a higher quality finish for collectors, are permissible.

Moreover, coins issued under state law may also qualify as permissible investments in these accounts, depending on their characteristics and the regulations in place. This means that while certain coins hold value and meet investment standards, they must align with the guidelines set forth by the Internal Revenue Service (IRS) to ensure they are legitimate options for retirement and investment accounts.

Thus, the options asserting that only American Eagle Proof coins or only U.S. origin coins are acceptable are too restrictive, as they do not account for all eligible types, including state-issued coins.