Learn everything about Self Directed IRA (SDIRA) — from how it works to investment options and a full list of leading SDIRA custodians. If you want quick access to SDIRA details, Check below NOW.
What is a Self Directed IRA (SDIRA)?
A Self Directed IRA (SDIRA) is a retirement account that gives you greater control and flexibility in choosing investment options beyond traditional stocks, bonds, and mutual funds. It allows you to invest in alternative assets such as real estate, precious metals, private placements, and more.
Eligible and Prohibited Investments
- ✅ Eligible: Real estate, gold/silver, private placements, limited partnerships (LP), tax lien certificates, commodities
- ❌ Prohibited: Life insurance, S corporation stocks, collectibles, self-dealing transactions
How to Open an SDIRA
You must open an SDIRA through a specialized Self Directed IRA custodian. Custodians only manage the account but do not provide investment advice. Therefore, it’s essential to do your research or consult a financial advisor.
Funding Your SDIRA
You can fund your SDIRA by transferring or rolling over assets from an existing Traditional IRA, Roth IRA, SEP IRA, or 401(k). Be sure to follow IRS rules carefully to avoid taxes and penalties.
Top SDIRA Custodians
| Custodian Name | Headquarters | Key Features |
|---|---|---|
| Equity Trust Company | Ohio | Strong in real estate & alternative investments |
| Entrust Group | California | Robust education & investment platform |
| IRA Financial Trust | South Dakota | Supports Checkbook IRA |
| Advanta IRA | Florida | Professional consulting services |
| Madison Trust | New Jersey | Affordable fee structure |
| uDirect IRA Services | California | Diverse investment support |
| American IRA | North Carolina | Specialized in real estate SDIRA |
| Sunwest Trust | New Mexico | Expertise in tax lien investing |
| Rocket Dollar | Texas | Online-managed Checkbook IRA |
| Preferred Trust Company | Nevada | Specialized in precious metals IRA |
Conclusion
A Self Directed IRA is a powerful tool for investors seeking broader control over their retirement portfolios. However, it comes with increased responsibility, IRS compliance requirements, and potential risks. Make sure to educate yourself thoroughly and consult with professionals before making investment decisions through your SDIRA.
