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Self Directed IRA Rules To Retirement Investing

self directed ira rules

Retirement planning and investing can be frustrating if you would like to invest in something other than the stock market. Most don't even think twice about investing in the stock market because they don't know that there are other options out there. There are so many people that do not even know about self directed accounts. I have heard a statistic that somewhere around only 2% of people with retirement accounts know about self directed IRAs and 401ks. Self directed IRA and 401k investing can be a very strong addition to your retirement accounts.

What Is A Self Directed IRA

A self directed IRA is just like other retirement accounts. You can have Roth self directed IRAs and Traditional self directed IRAs. What is the difference between a regular IRA and self directed IRA? The difference is that You can invest in things other than the stock market and bonds. Typically with IRAs you are limited to stocks and bonds. Typically that is the case because the custodian who is in charge of your IRA doesn't allow those types of investments. We will talk more about custodians in a later post.

What Types Of Investments Are Allowed In A Self Directed IRA

The great things about self directed IRAs is that you have control over them. You are the one that decides what it is invested in. When talking about the types of investments that can be done through a self directed IRA it is easier to explain the types of investments that cannot be done. Self directed IRA rules are fairly simple and it boils down to this: You cannot do any investments that involve disqualified persons or that may cause a direct benefit nor can you invest in collectables or life insurance. If the thing that you want to invest in can pass any of those criteria then you more than likely can invest it in your self directed IRA

These types of IRA accounts are great ways to diversify your retirement portfolio and sadly most of Americans are not leveraging these types of accounts to make greatly improve their retirement. If you are interested in learning more about self directed accounts contact us today. We can also help you get investing with your retirement accounts in things other than the stock market.