Self-directed IRAs can help you save for retirement with a variety of flexible investment options. These are great options for people who want a managed retirement portfolio, but have the knowledge to choose their own investments.
Self-directed IRAs are powerful investment tools, but they’re not for everyone. Unfortunately, recent growth in their popularity has led to a surge of information and opinions online, and not all of it is accurate. Below, you will find the information you need to decide for yourself if your retirement portfolio might benefit from a self-directed IRA.
Self-Directed IRA Educational Articles
As you begin to explore alternatives to standard stocks and bonds, misinformation springs up which can confuse even the savviest investors. We have found that there are five pervasive myths which prevent people from pursuing the most productive investments.
New to self-directed IRAs? This guide will walk you through the process of setting up a self-directed IRA. There’s also a list of benefits and drawbacks to help you choose what’s right for you.
When you own a self-directed IRA, you’re required to complete three forms as part of the fund’s annual maintenance. Learn more about the forms required by the IRS as part of your self-directed IRA’s annual maintenance.
A self-directed IRA can be of great benefit to many people. However, certain mistakes made when managing your IRA can land you in hot water. Avoid these common errors.
How did the self-directed IRA come about? Get a glimpse into the fascinating history of the self-directed IRA and what it means for its future.
There are three common fee structures for self-directed IRAs. Review each, and see examples of the practical applications of how such fee structures impact your IRA’s bottom line.
We’ve all heard about the importance of diversified assets. True diversification, though, extends beyond the stock market. A Self-Directed IRA actually make it easier and more efficient to diversify assets.
Most investments carry management fees. Learn more about the fees that come with a self-directed IRA and how they compare to other investments.
Self-directed IRAs offer investment control in three ways: asset choice, transaction pricing, and investment timing. Learn more about investment control with a self directed IRA.
The IRS has many rules regarding the management and use of self-directed IRAs. Learn more about the IRS regulations regarding contributions, valuation, and reporting of a self-directed IRA.
Unrelated Debt and Business Income Tax for Self-Directed IRAs
Two important, but rarely discussed, topics for the self-directed IRA holder include business income taxes and debt-financed income.
Certain business investments are subject to taxes. If you’re not careful, you may end up owing taxes. Learn more about Unrelated Business Income Tax (UBIT).
When an IRA, or LLC in which an IRA has an ownership interest, borrows money to purchase real estate , the portion of the net profits attributable to the borrowed money is considered Unrelated Debt Financed Income (UDFI). Learn more about what is taxable and what isn’t.
Self-Directed IRA FAQs
Basics and Beginnings
Common questions about starting a Self-Directed IRA include:
- What is a Self-Directed IRA?
- How does a Self-Directed IRA compare to a traditional IRA?
- How do I set up a Self-Directed IRA?
- How does a Self-Directed IRA work?
- Can I roll my existing retirement account into a Self-Directed IRA?
Self-Directed IRA Options
One of the greatest strengths of a Self-Directed IRA is the ability to diversify into alternative investments. Here are some common questions about those options:
- How can I buy gold with an IRA?
- Can I personally hold the gold in my Self-Directed IRA?
- How can I buy real estate with an IRA?
- What can I do for a property owned by my IRA?
- What’s the difference between the custodian model and the checkbook model?
Rules, Regulations, and Taxes
Broad Financial will take care of the paperwork involved in setting up your accounts, but we do still get questions about legal and tax implications:
- Is a Self-Directed IRA a tax-deferred retirement account?
- What are the rules and regulations surrounding Self-Directed IRAs?
- What are the specific tax rules and regulations on Self-Directed IRAs?
- Are there legal challenges to the Self-Directed IRA?
SEP IRA Contribution Calculator
The Ultimate Self-Directed IRA is available as a SEP IRA. Whether you have a self-directed SEP IRA, or a traditional SEP IRA, get your contribution limit quickly and easily. Fill in a few fields, and our SEP IRA Contribution Calculator will show you the maximum contribution you can make toward your SEP IRA this year.