Posts Tagged ‘Investment Decisions’

Self Directed IRA 101

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What is a Self Directed I.R.A.?

A self directed IRA (individual retirement account) is a retirement plan that requires the account owner to direct investment decisions on behalf of the retirement plan.

What is the Difference Between a Regular IRA and a Self Directed I.R.A?

While they are similar in many ways, the biggest difference between a self directed and a regular IRA account is the account holder of a self directed IRA is allowed to make investment choices instead of a trustee or custodian who is in charge of the account.

Does a Self Directed I.R.A. need an Administrator?

Technically no but it is always a good idea to invest in a qualified account administrator who can keep your investments in order and make sure it complies with any related government regulations.

What Type of Retirement Accounts can be put in a Self Directed IRA Account?

There are a variety of retirement accounts that can be placed in a self directed IRA including 401(k)s, regular I.R.A.s, qualifying annuities, and educational IRAs.

What Fees are Associated with a Self Directed Individual Retirement Account?

If you choose to appoint an administrator of the account, you should expect to pay reasonable fees for their services.

Is There a Downside to Investing with a Self Directed Individual Retirement Account?

The simple fact that a self directed IRA puts the account holder in charge may be a downside to some if they do not want to manage the account and subsequent responsibilities themselves. For such people, a traditional IRA may be a more viable option than a self directed IRA.

What Types of Transactions are Prohibited Under a Self Directed I.R.A?

You may not invest in anything under a self directed IRA that can be categorized as collectible by the IRS. This includes precious metals, gems, art, antiques, and alcoholic beverages such as rare wine.

Can I Invest in Real Estate under a Self Directed I.R.A.?

Yes, account holders can invest in real estate, including single family homes, commercial properties, and residential condos to name just a few.

By: Rich Ahlgren

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