What is a Self Direct IRA?
A SIRA is a type of traditional or Roth IRA that allow individual to save for retirement on a tax-advantaged basis and has the same IRA contribution limits. The difference between self-direct and other IRA’s is the type of assets owner in the account. SIRA’s have investment option which include stocks, bonds, real estate, and business. This allows individuals with investment experience to maximum profit while still enjoying all the benefits of traditional IRAs. (tax deductions, tax-free profits, and estate planning).
Benefits of a Self Direct IRA
Tax
Self-Directed IRA can offer tax-deferred/tax-free profits, plus the possibility of large tax deductions.
Control
With SIRA’s, you will be able to take control of your retirement savings and direct your money to investments you you understand. You are the one who makes the investment decision and determines when and where to invest your retirement funds. The volatility of the stock market is now an option, not your only choice.
Diversification
Account holders can make both traditional(stocks, bonds) and alternative investments within SIRA’s, but it also allows owners to diversify into real estate. This means you can own the actual property in your SIRA.
Secured Asset
Self-Directed IRAs are afforded protection under federal bankruptcy laws to ensure assets are secure.
Generational Wealth
Certain Self-Directed IRAs allow the passing of assets to beneficiaries after death with little or no tax, allowing you to create generational wealth for your family.
4 Easy Steps: Setting up a Self Direct IRA
- Find an experienced custodian who is well-versed with the rules and regulations of such accounts to assist establish your self-directed IRA. See our preferred partners below.
- Open an IRA account by filling out and signing the necessary documents
- Fund the SIRA with a out-of-pocket contribution, transfer from existing IRA or new contribution, transfer or roll over from an existing retirement account or a rollover from your existing IRA.
- Find and conduct due diligence on an investment. Notify your custodian about your investment opportunity and being the necessary paperwork