What is a Self-directed IRA?

By lvwebsite Raise Capital February 24, 2021

What is a self-directed IRA?

A self-directed Individual Retirement Account (SDIRA) is a variation on a traditional or Roth IRA in which you can hold a variety of alternative investments, including real estate, that a regular Individual Retirement Account can’t own.

In general, self-directed IRAs are available only through specialized firms that offer Self-Directed IRA custody services.

Available as either a traditional IRA (to which you make tax-deductible contributions) or a Roth IRA (from which you take tax-free distributions), self-directed IRAs are best suited for savvy investors who already understand the alternative investments and who want to diversify in a tax-advantaged account.

The main difference between Self-Direct IRAs and other IRAs is the types of investments you can hold in the account.

In general, regular IRAs are limited to common securities like:

Stocks
Bonds
Certificates of deposit
Mutual or exchange-traded funds (ETFs).

But Self-Directed IRAs allow the owner to invest in a much broader array of assets. With a Self-Directed IRA, you can hold:

Precious metals
Commodities
Private placements
Limited partnerships
Tax lien certificates
Crowdfunding
Private equity investments
Real estate and other sorts of alternative investments.

In a collaboration with Vantage, on March 11th, you will be able to learn more about Self-Directed IRAs, if it is the right vehicle for you, and also have all your questions answered in our live webinar.

TAKE CONTROL. CHOOSE YOUR OWN INVESTMENTS. SECURE YOUR OWN FUTURE

Team Localvest