Self-Directed IRA

For those who are not self-employed and want to make alternative investments.

What is a Self-Directed IRA?

A Self-Directed IRA allows investors to use retirement funds to buy alternative assets. You won’t find the term “Self-Directed IRA” anywhere in the Internal Revenue Code; it simply refers to an IRA account that is permitted to be invested in traditional assets like stocks, but also alternative assets, like real estate and cryptocurrencies.  In the last several years, the number of self-directed IRA accounts has grown significantly.

The Internal Revenue Code does not describe what a self-directed IRA can invest in, only what it cannot invest in. In general, as long as the self-directed IRA does not purchase life insurance, collectibles, or engage in a prohibited transaction outlined in Code Section 4975, then the investment can be made.

Using a Self-Directed IRA to make investments with your retirement funds can be a great way to diversify your retirement portfolio and will give you the opportunity to invest in hard assets you know and understand. 

Next, you’ll find a short overview of what IRA Financial Group’s Self-Directed IRA offers. You can also check out our learn more pages for in-depth information.

from $1250

one-time establishment fee

$180/yr

IRA custodian fee

What’s included?

  • Establishment of one (1) Self-Directed IRA “Checkbook Control” Structure
  • Acquisition of LLC Tax Identification Number
  • Establishment of Self-Directed IRA account with IRS Approved Custodian
  • Generating special purpose Self-Directed IRA LLC Operating Agreement
  • Generating special purpose Self-Directed IRA LLC Subscription Agreement
  • Assistance with the transfer of funds to an FDIC-insured IRA Custodian
  • Assistance in the establishment of business bank account
  • Assistance in completion of documents to transfer funds to LLC
  • Free tax consultation on the UBTI and UDFI rules
  • Memorandum on the Self-Directed IRA LLC Structure
  • Free tax consultation with CPA on Self-Directed IRA LLC tax reporting guidelines
  • Free consultation with in-house tax professional on the Self-Directed IRA LLC structure and prohibited transaction rules
  • Guaranteed IRS audit Protection regarding the legality of the Self-Directed IRA structure

What our Self-Directed IRA offers

Checkbook Control

With our checkbook control plan, you’ll be able to make IRA investments without having them approved by a custodian. Every decision is truly yours and may be carried out by simply writing a check or executing a wire transfer.

Tax Advantages

This plan gives you all the tax advantages of a traditional IRA, as well as tax deferral or tax-free gains in the case of a Roth IRA. All income and gains generated by your IRA investment will flow back to your IRA tax free. 

Invest In What You Know & Understand

With this plan, you can make almost any type of investment, including real estate, private business entities, tax liens, precious metals, cryptocurrencies, private businesses, and more tax-free. Diversify and better protect your retirement portfolio.

Limited Liability

Your IRA will benefit from the limited liability protection afforded by an LLC. All your IRA assets held outside the LLC will be shielded from attack.

Strong Creditor Protection

IRA will generally be protected for up to $1 million in the case of personal bankruptcy. In addition, most states will shield an IRA from creditors’ attack against the IRA holder outside of bankruptcy. 

Speed & Lower Fees

When you find an investment that you want to make with your IRA funds, simply write a check or wire the funds straight from your IRA LLC bank account. This allows you to eliminate the delays associated with a custodian controlled IRA.

What you can do now

Learn if you qualify

Don’t know which plan you qualify for? Have questions about a transaction? Our tax professionals are here to help and will get back to you ASAP.

Open An Account

We’ll take care of everything. We’ve helped over 12,000 clients open self-directed retirement accounts over the last 10 years. The whole process can be handled by phone, email, fax, or mail. Our expert tax and ERISA retirement professionals are on-site, greatly reducing the set-up time and cost.

Call us at 800-472-0646 to get started; we’ll help you get a self-directed retirement structure started within minutes.

Learn More

We have a ton of resources that will help answer all your questions. We understand the importance of education when it comes to retirement, and we want to make sure you’re confident about every decision you make.

The button below takes you to our learn more pages, but you also have access to our Forbes articles, blog, videos, and podcast.

Terms you may have heard

We know there’s a lot of information out there; these terms will help you sort through the different types of plans.

LLC

LLC stands for Limited Liability Company and has rapidly become one of the most popular business entity types for new and small businesses, largely because it is considered to be simpler and more flexible than a corporation. The LLC business structure combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation. 

LLCs, like corporations, are recognized as separate legal entities, meaning its members are protected from company debts, obligations, and liabilities. In the self-directed IRA LLC context, the LLC owner would be the IRA and the manager would be you, the IRA owner.

SEP

A SEP is a retirement savings plan established by employers, including self-employed individuals (independent contractors- sole proprietorships or partnerships) for the benefit of their employees.

Employers may make tax-deductible contributions on behalf of eligible employees – including the business owner – to their SEP IRAs. The maximum SEP IRA contribution amount is 25% (20% if you are self-employed or a single member LLC) of an employee’s compensation. The SEP IRA follows the same distribution rules as a traditional IRA.

SIMPLE

A SIMPLE IRA (Savings Incentive Match Plan for Employees) allows employees and employers to contribute to traditional IRAs set up for employees. It is suited for a start-up retirement savings plan for small employers not currently sponsoring a retirement plan.

Any employer (including self-employed individuals, tax-exempt organizations, and governmental entities) that had no more than a hundred employees with $5,000 or more in compensation during the preceding calendar year can establish a SIMPLE IRA plan. The plan allows eligible employees to contribute part of their pretax compensation to the plan. 

ROTH

A Roth IRA is an individual retirement account that offers tax-free growth and withdrawals in retirement. The rules dictate that as long as you’ve owned your account for 5 years and you’re 59½ or older, you can withdraw your money when you want to and you won’t owe any federal taxes.  With a Roth IRA, there are no required minimum distributions (RMDs) for as long as you live. In addition, contributions to a Roth IRA are not required to stop when you reach 70½, the cut-off age for a traditional IRA.

However, contributions may be limited by how much you earn—your modified adjusted gross income (MAGI) must be less than the annual limit set by the IRS.