Self DIrected IRA Account Types

A Self Directed IRA Offers More Investment Options

One of the biggest reasons why people choose to invest using a self directed IRA is because the investment options allowable are not limited to only stocks and mutual funds. Unlike a traditional IRA or 401(k), a SDIRA allows you to invest in things that you choose. The multitude of investment options is what makes a self directed IRA so unique and powerful. Here is a list of some of the many different investment options available with a self directed IRA.

A Self Directed IRA allows you to invest in things like:

  • Real Estate
  • Trust Deeds
  • Corporations
  • Crowd funding
  • Gold
  • Farms
  • Raw Land
  • Stocks
  • Mutual Funds

There are more specific niches of allowable investment types, but as you can see this list already includes much more than other traditional IRA types.

Self Directed IRA types

Not only do you have many more investment options to choose from, you can also select different types of Self Directed IRAs. Choosing the right IRA type can help you save tens of thousands of dollars in taxes, which of course means more money in your pocket when it comes time to retire.

Some of these Self Directed IRA types are:

  • Self Directed Traditional IRA
  • Self Directed ROTH IRA
  • Self Directed SEP IRA
  • Self Directed Individual 401(k)

Which account is right for you? The answer to that questions really depends on where you currently stand with your retirement. In some cases it may be better to open an IRA and pay the taxes up front, like with a self directed roth IRA. In other cases it may be better to roll your account into a self directed traditional IRA to minimize early withdrawal penalties. Whatever the case is, don’t worry, we have an IRA Account Tool that will help you find the right fit for you.

Which IRA Account is right for me?

Self Directed IRA Rules

When choosing to invest using a self directed IRA it is important to understand the different set of self directed IRA rules that apply to this investment vehicle. Some of the main self directed IRA rules are:

  • You cannot invest a SDIRA in life insurance
  • You cannot invest a SDIRA in collectibles (i.e. artwork, rugs, antiques, etc)
  • You cannot invest in things that would be considered “self dealing”
  • You cannot use a SDIRA to purchase property for self use (i.e. the home you are going to live in)

These are not all of the self directed IRA rules but you can learn more about them by checking out our page on Self Directed IRA Prohibited Transactions.