Redefine Your Retirement Strategy with Self Directed IRA

Step outside the box with a Self-Directed IRA.
Choose investments that match your expertise, passions, and long-term goals.

What is a
Self-Directed IRA?

A Self-Directed IRA (SDIRA) is a type of Individual Retirement Account that gives you greater control over your retirement investments and allows you to go beyond the traditional choices of stocks, bonds, and mutual funds. With a SDIRA, you can invest in a wide range of alternative assets such as real estate, precious metals, private equity, and even small business ownership. While the account must still be held by a qualified custodian, you make all the investment decisions—hence the term “self-directed.”
These accounts are best suited for experienced investors looking to diversify their portfolios and take a more active role in building long-term wealth. SDIRAs are typically set up through specialized custodians who understand the rules and risks involved with alternative investments.
Now that you understand what a Self-Directed IRA is, let’s explore how it works in practice. From key features to IRS rules and funding options—use the sections below to dive deeper.

Key Features

  • Annual contribution limit of $7,000 for 2025 (if under 50)
  • Tax-deferred growth on Traditional IRAs
  • Tax-free growth on Roth IRAs
  • Required custodian oversight for all transactions
  • Must follow IRS rules regarding prohibited transactions

Eligibility Criteria

You must be under 70½ years old to contribute to a Traditional Self-Directed IRA. There are no age restrictions for a Roth Self-Directed IRA.

You must have earned income (from a job, self-employment, etc.) to contribute to a Self-Directed IRA. This includes wages, salaries, tips, commissions, or net earnings from self-employment.

How to Open an Account

Opening a Self-Directed IRA is simple and gives you complete control over your retirement investments. Here’s how to get started:

  • 1

    Complete the SDIRA Application

    Select a custodian that specializes in Self-Directed IRAs and decide whether you want a Traditional or Roth SDIRA. Let's Get Started

  • 2

    Create an LLC also called a Checkbook LLC

    During the Application process we will create an LLC owned by your SDIRA.

  • 3

    Fund Your Account

    Fund your Self-Directed IRA through contributions, rollovers, or transfers from other retirement accounts.

  • 4

    Select Investments and Follow IRS Rules

    Once funded, choose your investments (real estate, precious metals, etc.) and ensure they comply with IRS regulations.

How to Fund Your Account?

There are three main methods to fund your Self-Directed IRA:

Transfer

Move funds or assets between IRAs of the same type. This is tax-free and penalty-free when executed properly.

  • Typically occurs between different custodians
  • Must be from one like account to another
    (e.g., Traditional IRA to Traditional IRA)
  • No tax reporting required if processed correctly
  • Unlimited transfers allowed per year

Contribution

Add new funds to your Self-Directed IRA, subject to annual IRS limits and rules based on your age and income.

  • $7,000 annual contribution limit if under age 50
  • $8,000 annual limit for those 50 or older
    (includes $1,000 catch-up)
  • Traditional IRA contributions may be tax-deductible
  • Roth IRA contributions are made with after-tax income

Rollover

Shift money from another retirement account—such as a 401(k), 403(b), or IRA—into your Self-Directed IRA.

  • Direct rollover: Funds go directly between accounts, avoiding taxes and penalties
  • Indirect rollover: You receive the funds and must redeposit them within 60 days
  • Only one indirect rollover allowed per 12-month period per person
  • Late redeposit may result in taxes and penalties

IRS Rules

Although the guidelines for self-directed IRAs are almost similar to those for other retirement accounts, it’s important to familiarize yourself with self-directed IRA rules and regulations.

The IRS defines specific individuals and entities as disqualified from transacting with your SDIRA, including:​

  • The account holder (you).​
  • Your spouse.​
  • Lineal ascendants and descendants (parents, children, grandparents, grandchildren) and their spouses.​
  • Entities in which you or other disqualified persons hold a significant ownership interest.​

While SDIRAs offer broad investment options, certain assets are prohibited, such as:​

  • Life Insurance Policies: Investing in life insurance contracts is not permitted within an SDIRA.​
  • Collectibles: Items like artwork, antiques, gems, stamps, and certain coins are restricted.​
  • S Corporations: SDIRAs cannot invest in S Corporations due to IRS regulations.​

Rollovers

Rollovers to
a Self-Directed IRA

Yes, you can roll over funds from various retirement accounts into a Self-Directed IRA. The process depends on the type of account you're transferring from:

  • Traditional IRA

    Can be directly transferred without triggering taxes

  • SEP IRA

    Eligible for full rollover into a Self-Directed IRA

  • SIMPLE IRA

    Can be rolled over after two years of participation

  • 401(k), 403(b), or 457(b)

    Eligible for rollover if you’ve left your employer

  • Roth 401(k)

    Can be rolled over into a Self-Directed Roth IRA (consult a tax advisor for details)

Rolling funds into a Self-Directed IRA opens up more investment possibilities—letting you diversify into real estate, private equity, cryptocurrency, and more.

Rollovers from
a Self-Directed IRA

You can also roll over funds out of your Self-Directed IRA into another qualified retirement account. Here's how it works:

  • 60-Day Rule

    If you receive the funds personally, you must redeposit them into another IRA within 60 days to avoid taxes and penalties.

  • Direct Rollover

    The safest and most tax-efficient method—your custodian transfers the funds directly to the new account.

  • Rollover to Another SDIRA

    Allows you to maintain control over alternative assets while switching custodians or account types.

  • Rollover to a 401(k)

    Possible if your new employer’s plan accepts roll-ins, though not all do.

Done correctly, a rollover from a Self-Directed IRA can be a smart, tax-advantaged way to realign your retirement strategy or consolidate your accounts.

Traditional Self-Directed IRAvs.
Roth Self-Directed IRA

Feature Traditional
Self-Directed IRA
Roth
Self-Directed IRA
Tax Treatment Contributions are tax deductible (if eligible); taxes paid on withdrawals Contributions are made with after-tax dollars; withdrawals are tax-free in retirement
Income Limits No income limits to contribute Income limits apply for eligibility to contribute
Withdrawals
  • Subject to ordinary income tax
  • 10% early withdrawal penalty if under 59½
  • Must have cash available in account for distributions
  • Tax-free after age 59½ if the account is at least 5 years old
  • Earnings withdrawn early may face taxes and penalties
  • Contributions can be withdrawn anytime without penalty
Required Minimum Distributions (RMDs) RMDs required starting at age 73 No RMDs during the account holder’s lifetime
Best For Those who want tax savings now and expect lower taxes in retirement Those who prefer to pay taxes now and expect higher taxes later

Benefits of Self-Directed IRA Account

Investment Freedom

Go beyond traditional investments like stocks, bonds, and mutual funds, and invest in real estate, private equity, cryptocurrency, and more.

Tax Benefits

Enjoy tax-deferred or tax-free growth, depending on whether you choose a Traditional or Roth IRA.

Portfolio Diversification

Add alternative assets to reduce market risk and create multiple income streams.

Potential for Higher Returns

Alternative investments can offer higher returns than conventional markets.

More Control

You choose where your money goes—no limited fund menus or third-party restrictions.

Legacy Planning

Pass on physical assets and build long-term wealth for future generations.

Who Is a Self-Directed IRA For?

These accounts are best suited for experienced investors looking to diversify their portfolios and take a more active role in building long-term wealth. It’s ideal for:

Real Estate Investors

Looking to hold rental properties, land, or commercial real estate inside a retirement account.

Entrepreneurs & Startup Investors

Interested in using retirement funds to invest in early-stage businesses or private placements.

High-Income Earners

Wanting tax-advantaged retirement savings with control over where funds are invested.

Business Professionals

Doctors, lawyers, or consultants looking for greater control and diversification in their retirement strategy.

Freelancers / Contractors

Earning 1099 income but not ready to open a Solo 401(k), and prefer simpler contribution requirements.

Discover How Some of Our clients Have Quadrupled Their Retirement Savings

Self Directed IRA Alternate Investment Options

The investment options with a self-directed IRA are virtually limitless, provided that the guidelines laid down by the IRS are followed. Some of the permissible alternative investments are but not limited to:

Don’t Let Traditional Retirement Plans Limit You

Take control with a Self-Directed IRA plan—invest beyond stocks into real estate, annuities, and more. Get expert guidance tailored to your goals.

Frequently Asked Questions

Can I move my 401(k) into a self-directed IRA?

Yes, you can move your 401(k) into a Self-Directed IRA through a rollover. If you have a 401(k) from a former employer or a 403(b), you can roll over those funds into a Self-Directed IRA. This allows you to gain more control over your investment choices, including alternative assets like real estate, private equity, and more. You can do a direct rollover, where funds are transferred directly between accounts, or an indirect rollover, where the funds are sent to you first and must be deposited into the new account within 60 days.
Yes, you can invest in real estate with a Self-Directed IRA. One of the key benefits of a Self-Directed IRA is the ability to invest in tangible assets like real estate, including residential, commercial, and rental properties. However, it’s important to remember that you cannot use the property for personal benefit. All expenses related to the property (such as repairs, taxes, and property management fees) must be paid from your IRA, and any income generated must go back into the IRA.
While Self-Directed IRAs (SDIRAs) offer expanded investment opportunities, they also come with specific risks that investors should carefully consider:​
Understanding these risks is crucial for anyone considering a Self-Directed IRA to ensure it aligns with their investment goals and risk tolerance.
Investing in your own business with a Self-Directed IRA would be considered a prohibited transaction by the IRS. This falls under the “self-dealing” rules that prevent using retirement funds to directly benefit yourself or disqualified persons (like family members).
Setting up an LLC within a Self-Directed IRA is a popular strategy to gain checkbook control over your IRA investments. Here’s how the process works:
A Self-Directed IRA offers greater flexibility, allowing you to invest in alternative assets, while a traditional IRA generally limits investments to stocks, bonds, and mutual funds. Both accounts offer tax advantages, but a Self-Directed IRA gives you more control over where your funds are invested.
A custodian is a financial institution responsible for holding and safeguarding your assets. While you make the investment decisions, the custodian ensures that the transactions comply with IRS rules. They also handle the paperwork and manage tax reporting.
If you engage in prohibited transactions or violate IRS rules (like using IRA assets for personal benefit or doing business with disqualified persons), the IRS may disqualify your IRA, causing it to lose its tax-advantaged status and triggering taxes and penalties.

Expand Your Knowledge

Explore our articles, guides, videos, and other resources to broaden your financial understanding and set the stage for growth. Whether you’re just starting out or looking to level up, our expertise is here to guide you.

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