A self-directed IRA is an individual retirement account that gives the account holder the ability to direct their retirement funds into alternative assets.
Standard IRAs held at brokerage firms or banks limit available assets to more conventional categories like stocks, bonds, and mutual funds.
Unlike those standard accounts, an Accuplan self-directed IRA account has the power to invest in a wide range of assets available. Popular options include rental properties, loans, cryptocurrency, and more.
Self-Directed IRA Investor Advantages
A self-directed IRA is chosen again and again for two main reasons: the ability to 1. diversify your retirement portfolio and 2. tax advantages.
Diversification: Individual asset classes can undergo severe downturns. It’s rarer for multiple asset classes with various sources to decline at the same time. Keeping all eggs in one proverbial basket can be dangerous, so investors diversify to help mitigate risk.
With this retirement savings account, money can now be dispersed into asset types beyond paper assets, like stocks and bonds, helping to protect retirement money from significant loss.
Tax Advantages: Self-directed accounts provide the same tax advantages standard IRAs provide, tax-deferred or tax-exempt growth.
Opening Your Own Self-Directed IRA Account
We have made our application process simple for client convenience. All that’s required to get started is the personal information of the account holder, funding information from an established IRA, or a brand new retirement savings account.
Personal information you will need:
- Social Security Number
- Date of birth
- Contact information: phone number, email address
- Mailing address
- Image of your valid photo ID
To fund your account, options are:
- Direct contributions, for 2021 the annual contribution limit is $6,000.
- Rollover an established IRA, 401K, or another type of tax-qualified account
- Transferring funds or assets from one provider to another within the same retirement account type
Investing has never been easier:
To invest your IRA funds, you will fill out a direction of investment(DOI) form, found on your account dashboard. From there you can easily self-direct your tax-advantaged funds.
Call us at 800-454-2649 for assistance.
Self-Directed IRA Rules
When operating a self-directed account, it is imperative to follow all IRS rules and laws, or the IRA could be subject to fines and penalties. Commonly broken rules are prohibited transactions and investments, indirect benefits, disqualified persons, and contribution limits.Learn more
Most Common Alternative Assets
Follow the IRS rules and regulations, and investment options are limitless inside a self-directed IRA.
A few of the assets that are not allowed: Life Insurance, Collectibles like Art, Firearms, Antiques, and some Precious Metals.Learn more
Do Even More With an IRA LLC
Control when and where you direct retirement funds
Gain protection on assets within the LLC Control: As the owner of the IRA LLC, you receive a physical checkbook that’s tied to your IRA funds so you can direct investments. No need to wait around for the custodian to approve and control your funds, do it yourself. An IRA LLC is a popular tool for real estate investors, who often need quick access to cash to pay vendors, repairs, and fees associated with property management.
Asset protection: An IRA LLC acts like a corporation because it provides the owner with Limited Liability. The actions and the debts of the IRA LLC are held within the LLC, so losses, issues, or other mishaps are contained to the LLC, protecting you and the asset.Learn more about IRA LLCs
How Accuplan Helps You Put Your Plan into Action
Investing Your Way
Accuplan offers a genuinely self-directed IRA that allows for the complete customization of a retirement portfolio. On top of our SDIRA services, we also house HSAs, Employee Wellness Programs, LLC creation, 401K and business accounts, and everything required to operate a retirement account successfully.
Decades of Leadership
Since 2007 our dedicated team has been working hard for our clients. We have constantly been innovating, and we’re invested in our clients. Learn more about Accuplan’s history here.
Our goal is to continue to educate our clients on all IRS laws, rules, and any new SDIRA updates that impact their retirement through quarterly educational newsletters, weekly blogs, educational videos, asset guides, and more.
Our alternative investment platform is built for investors by investors. Schedule a walkthrough tour today with one of our trusted representatives!
What Accuplan Customers Are Saying
“Ben Barker is the most helpful person. He has saved me on several occasions. He probably saved me from paying over $50,000 in personal income taxes. I have been Ben’s customer for almost four years, and every time I call him or need advice, he has been there. Ben also personally set up my self-directed IRA LLC so I can manage my real estate holdings. Ben is an incredible and knowledgeable resource at Accuplan. Thanks again, Ben. I could not have done this without you. “
-Captain Chris Liu, San Francisco, CA
Self-Directed IRA FAQs
Yes. Accuplan’s clients have complete access to invest in all types of real estate, like rental homes, commercial real estate, raw land, and more. The investment options are limitless so long as you are following the IRS guidelines stated here. Here are some of the most common errors real estate investors can make.
These acronyms stand for Unrelated Business Income Tax, Unrelated Business Taxable Income, and Unrelated Debt-Financed Income. UBIT is the taxes that the IRS can charge based on a tax-exempt asset. UBTI is the type of income that is taxable. And UDFI is used on assets that generate income that’s debt-financed like real estate. Go here for a full explanation.
We have a flat, non-percentage-based fee structure, so no matter how much your account grows, an annual fee will remain a flat $349.95. Click here for our full fee disclosure.
We simplified our application process, so it only takes you 5 minutes to get started. Follow these three easy steps to open a self-directed IRA account. 1. Fill out the application. 2. Fund your account. 3. Direct your funds. Fill out the application here.
To sum it up, Expertise. Cost. Reliability. Accuplan Benefits Services has been an industry leader for decades. Invaluable experience and expertise come standard. Our fees are among the lowest around. We offer a flat, non-percentage-based fee schedule, so your fees never grow, so your IRA funds will. Being able to rely on Accuplan as your administrator is imperative to your success. Our team is dedicated to serving you, answering questions, keeping your account IRS compliant, and assisting in any way that we can.
Experience the Accuplan Difference.
Two of the main advantages of a self-directed IRA are tax advantages and portfolio diversification.
Self-directed Roth IRAs and self-directed Traditional IRAs are tax-advantaged savings accounts, so investing with them provides the owner with the ability to have their investments grow at either a tax-free or tax-deferred rate.
Sure, you can diversify your stocks and bonds in many ways, giving you a much more diverse set of “paper” assets. A much deeper diversification comes when you pair “paper” assets with “tangible” assets. Do all of that inside of a tax-advantaged retirement account, and you’re opening the true potential of your retirement accounts.
According to the IRS, here is a stated list of prohibited transactions in an IRA. Your IRA cannot invest with the following related parties:
- Direct lineal family members. Linear family members include parents, grandparents, children, and grandchildren.
- A fiduciary of the IRA.
- Any person who has authority or control over your IRA or provides fee-based investment advice.
- Any person who has discretionary authority to administer your IRA.
- Business partners where there is a 50/50 ownership on other investments.
Self-directed IRAs indeed are self-managed in that you will be finding and choosing the investment and doing any due diligence that goes along with investing. Choosing your assets can be daunting to some and puts pressure on the individual account owner. As always, Accuplan is here to help guide and keep you in line with rules and regulations.
An IRA custodian is required to file a 5498 both to the client and to the IRS. Distributions made throughout the year would require the custodian to report 1099 to the client and the IRS.
Typically no reporting is needed from the client as long as no distributions have been made and the client is not required to take distributions due to age. If the client has distribution requirements, has an IRA LLC, or has received debt financing inside the IRA, they may be required to report filings to the IRS.
We recommend that all investors consult with a CPA or accountant for all filing requirements to ensure they comply. Accuplan does not provide any tax or legal advice, and we do not file anything to the IRS except the 5498 and 1099.
Your IRA cannot invest in your own business or a related party’s business because of the disqualified persons rule. We do, however, offer the My Employee Stock Ownership Plan (MYSOP) that would allow this as long as specific guidelines are met through setting up a C Corp and a 401k.
Learn more about an ESOP.
Stocks and bonds have become the norm. Because of this, most financial advisors and brokers have found ways to make money pushing these products and haven’t broadened themselves outside of these investments. The truth is, most advisors, brokers, and custodians just haven’t found a way to make money pushing other types of investments. That is where we come in. We allow you to take full advantage of your IRA by investing in all legally available assets to you.