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Self-Directed IRA

Grow your wealth tax free

Invest in alternative assets like real estate and precious metals.

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IRA Financial App

What is a Self-Directed IRA?

A Self-Directed IRA is a type of individual retirement account that allows for more freedom than you will receive at a local bank or other financial institution. A Self-Directed IRA custodian, such as IRA Financial, simply administers the plan and does not offer investment products or advice. Because of this, you are free to invest in anything you want, so long as it is not prohibited by the IRS.

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The main advantage of the Self-Directed IRA is the ability to invest in alternative assets, including real estate, precious metals, private business, cryptocurrency, and so much more. This allows you to properly diversify your IRA portfolio and gives you the freedom to invest in hard assets you know and trust. Of course, a Self-Directed IRA has all the popular benefits of a regular IRA including tax deferral, Roth options, and the ability to invest in traditional assets, such as stocks, mutual funds, and ETFs.

Types of Self-Directed IRAs

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Custodian Controlled
Self-Directed IRA

  • IRA Financial Makes Investments at Your Request
  • Save Money on Set-Up Costs
  • Title to the Assets will be in the name of the custodian, care of the IRA Owner
  • No Need for an LLC
  • Best for those with a Low Frequency of Transactions
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Self-Directed IRA LLC
with Checkbook Control

  • You are in Total Control of Your Investments
  • Gain Checkbook Control of Your IRA Funds
  • Title to the Assets will be in the Name of the IRA LLC
  • Limited Liability Protection
  • Best for those with a High Frequency of Transactions
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Open a Self-Directed IRA

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Complete your Application

Once completed, it will go into a queue to be reviewed (generally, 3-5 days).

Application is Reviewed

Your application is reviewed to ensure everything is filled out correctly.

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Account Number Assigned

Once your application is approved, an account number is assigned and emailed to you (an additional 3-5 days).

Fund Your Account

You can now fund your Self-Directed IRA via transfer, rollover, or direct contribution.

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Start Investing

Once your IRA is funded, you can begin making investments!

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Complete your application

Once completed, it will go into a queue to be reviewed (generally, 3-5 days).

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Application is reviewed

Your application is reviewed to ensure everything is filled out correctly.

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Account Number Assigned

Once your application is approved, an account number is assigned and emailed to you (an additional 3-5 days).

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Fund Your Account

You can now fund your Self-Directed IRA via transfer, rollover, or direct contribution.

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Start Investing

Once your IRA is funded, you can begin making investments!

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Download our info kit to learn more about the Self-Directed IRA

Robust, easy to read, and updated for 2022. This guide is your one-step for all the most important questions about the Self-Directed IRA.

Endless Investment Opportunities.

Real Estate

Whether it’s residential or commercial, rental properties or raw land, real estate is the #1 alternative investment among retirement investors.

Precious Metals

Metals and coins have long been used as a hedge against a volitile economy – just make sure they are IRS-approved and not held personally.

Cryptocurrency

Cryptos, such as Bitcoin and Ethereum, offer one the ability to invest in an emerging asset class.

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Tax Liens/Deeds

Tax liens and deeds allow for exposure to the real estate market in your portfolio without having to invest in the properties themselves.

Investment Funds

Hedge funds and private equity fund investments are generally for more sophisticated, accredited investors.

Make IRS-approved alternative investments with your Self-Directed IRA

Private Placements

Investment opportunities offered to a select group of high net worth or institutional investors that have reduced risk and assured returns.

Quick FAQ & Further Reading

For 2022, you can contribute up to $6,000 plus an additional $1,000 catch-up contribution if you are age 50 or older. IRA contributions can be made in pretax, after-tax and Roth.

You can withdraw traditional IRA funds at any time. However, if you are under age 59 ½, you will face a 10% early withdrawal penalty. Once you reach that age, only taxes will be due. Roth IRA contributions can be withdrawn at anytime without tax or penalty. You must wait until age 59 ½ and for your Roth to be open at least five years to withdraw gains or face taxes and penalties.

Transfers occur between like accounts (IRA to IRA), while a rollover is from a different account (401(k) to IRA). A direct transfer or rollover goes directly from one custodian to another. An indirect transfer or rollover goes to you first. You then have 60 days to contribute the funds to a new plan.

Learn More: How the Self-Directed IRA Rollover Works

The IRS only describes what types of investments you cannot make with an IRA. These include life insurance, collectibles, and any transaction that involves a disqualified person.

An IRA cannot engage in a transaction with a disqualified person; these include you (the IRA Owner), your spouse, any lineal descendants or ascendants (parents, grandparents, children, grandchildren), their spouses, and any entity where a disqualified person owns more than 50%

Yes!  You can have as many IRAs as you wish, however, the annual contribution limit applies to all plans in the aggregate.

A required minimum distribution (RMD) is the amount you must withdraw from your traditional IRA once you reach age 72. The amount is generally about 3% of the total account balance.

If your spouse does not work, and has little to no earned income for the year, you may contribute on his or her behalf.  The contributing spouse must have enough earned income and follow the usual contributions rules.

Unlike a traditional IRA, a Roth IRA is funded with after-tax dollars. There is no upfront tax break, however, all qualified distributions are tax free!

If you wish to move traditional, pretax retirement funds into a Roth IRA, you may perform a conversion. Any amount converted to Roth will be taxable during the year of the conversion.

If your adjusted gross income exceeds the annual limit, you cannot directly contribute to a Roth IRA. However, you may contribute after-tax dollars to a traditional account, and then immediately convert them to Roth.

Learn More: Can I Still Do a Backdoor Roth IRA in 2022?