Most IRA custodians limit what your IRA can be invested in, so it’s usually a mix of stocks, bonds, CDs or mutual funds. But with the self-directed IRA offered through Accuplan, approved assets range from real estate like private mortgages or commercial property, precious metals, or private company stock, oil and gas limited partnerships, and intellectual property. You will have complete control over your investment choices.
What is a self-directed IRA?
A self-directed IRA is an Individual Retirement Account (IRA) that you directly control and transfer into the investments of your choosing. Self-directed IRAs allow alternative investments when saving for retirement. Some examples of self-directed IRAs include: real estate, private mortgages, precious metals, private company stock, oil and gas limited partnerships, and intellectual property.
How does a self-directed IRA work?
There are two options for self-directed IRAs. With the first, you open up an account, select an investment, and we purchase that investment for you. As per the IRS, any and all profits that are gained through these investments funnel back into your IRA, since your IRA owns the investment. This allows your earnings to grow. This structure gives you control over your investments, but you will be required to work through Accuplan for each transaction.
For the second option, you open an account, and we as the custodian, create a separate LLC that your IRA will invest in. This LLC can have a checking account setup so you can manage the LLC. You will have administrative powers and control over the asset and/or checking account. Any and all profits that are gained through these investments funnel back into your IRA. This account setup is ideal for clients who choose to hold real estate as an investment, and may need to pay bills and expenses related to the property. This way, you pay the bills directly instead of working with a custodian to pay the bills. As the manager of the LLC you can buy and sell those assets at your discretion.
How do you set up a self-directed IRA?
The first step toward setting up a self-directed IRA, is to open and fund your IRA. You’ll need to submit an application, provide some documentation, and set up a payment method. Next you select your investment and request funds. When the request has been approved, you purchase the investment. After that, you manage the investment, and if you choose, sell the investment.
Can I use a self-directed IRA to invest in my company?
It's tricky when it comes to investing in your own company with your own retirement funds, but it is possible. You first need to familiarize yourself with Employee Stock Ownership Plans, also called a mySOP. There are a lot of rules that you need to be aware of before you pursue this type of investment. Get in touch with us today if you're interested in creating a mySOP, and click here for more information on mySOPs, and how they work.
What are the benefits of a self-directed IRA?
Self-directed IRAs give you direct control and transfer into the investments of your choosing. Diversifying and getting your retirement account out of the stock market, and into tangible investments is the main goal of self-directed IRA owners. Being diversified helps hedge your IRA portfolio against inflation, and poor performances within the stock market, and protects your money.
Why haven’t I heard of self-directed IRA’s before?
Self-directed IRAs came into existence in 1974 with the creation of the IRA. Alternative IRA investments have always been allowed by the IRS. Self-directed IRAs aren’t as well known because most banks and brokerage firms that offer them prefer traditional investments.
Why choose a self-directed IRA?
One of the biggest reasons our clients choose to open a self-directed IRA is security. With self-directed IRAs, you're able to get your money out of the oftentimes unstable stock market, and into investments of your choice. A lot of investors choose to keep their own money in the stock market, but you don’t have to. Instead, you’re able to invest your money in alternative assets that you're familiar with and in what you want.
