Self-Directed IRAs


We find that many of our clients were previously unaware that the Internal Revenue Service allows you to utilize your qualified funds (IRAs, 401k, Defined Benefit Plans, etc) to invest in non-traditional assets such as real estate and small business.

An IRA is really just a personal savings account that allows you to contribute annually for your retirement savings. It provides either a tax-deferred or tax-free way of saving for retirement. There are many different types of IRA accounts, though traditional and Roth IRAs are the most common.

The primary benefit of a Self-Directed IRA is that it allows you to invest in both traditional and non-traditional assets. Whether you choose to use professional investment guidance or not, no matter what your Investment choices are – you are in control of your future!

What Types of Plans Can Be Self-Directed

When you make the decision to Self-Direct your retirement funds, you give yourself control over how, when, and where you build your wealth. Any of the following accounts can be set-up as or converted to a Self-Directed plan:

  • Traditional IRAs
  • Roth IRAs
  • SEP IRAs
  • SIMPLE IRAs
  • Individual(k)
  • 401(k)s
  • Defined Benefit Plans
  • Coverdell Education Savings Accounts (ESA)
  • Health Savings Accounts (HSA)

Prohibited Investments

With a Self-Directed Plan a whole world of investment opportunities opens up including traditional and non-traditional investments such as real estate, life settlement policies, mortgages notes, trust, deeds, private partnerships, private placements, timeshare units and limited liability companies. However the IRS does prohibit the following investments:

  • Life Insurance for yourself
  • Collectibles: Art, Antiques, Rugs, Gems, Stamps, etc..
  • Metals (except Gold, Silver & Palladium Bullion)
  • Coins (except US Minted Gold or Silver Eagle)
  • Alcoholic Beverages
  • Sub-Chapter S Corporations

Prohibited Transactions

In addition to some prohibited investments, your plan can be disqualified for improper use of your IRA or other self-directed account by you, your beneficiary, or any disqualified person including any of the following direct or indirect transactions:

  • Purchasing property currently owned by you
  • Using your account as security on a loan
  • Borrowing money from your account
  • Selling personal property to account
  • Purchasing real Estate for present use
  • Receiving payments for income generated from assets owned in your self-directed account

To learn more about the benefits of Self-Directed investing or getting started today, Contact us.

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