'WOULD A 1969 MUSTANG BE CONSIDERED A COLLECTIBLE OR A PERSONAL ITEM?'

It is a personal asset. A collectible might be an investment. other than stocks, that you hope will increase in value.

Collectibles under IRC Section 408(m)(2) include:

• Any work of art,
• Any rug or antique,
• Any metal or gem (with limited exceptions, below),
• Any stamp or coin (with limited exceptions, below)
• Any alcoholic beverage, or
• Any other tangible personal property that the IRS determines is a "collectible" under IRC Section 408(m).

Prohibited transactions

Acquiring a collectible may also be a prohibited transaction under IRC Section 4975(c). For example, the purchase of a collectible with plan funds for the personal use of a disqualified person could be a prohibited transaction under IRC Section 4975(c)(1)(D). An example could be the acquisition of artwork or rugs by an individually-directed account for use in the participant’s own home.