A Self-Directed Roth IRA gives you the opportunity to invest in a wide range of alternative assets — including real estate, private placements, and more — while enjoying the long-term benefit of tax-free qualified withdrawals.
Like all Roth IRAs, contribution limits and eligibility rules are set by the IRS and updated periodically for inflation. For the 2026 tax year, contribution limits and income thresholds have increased. Understanding these rules is key to maximizing your retirement strategy.
To learn more about how these plans work in general, start with What Is a Self-Directed IRA?.
Roth IRA Contribution Limits for 2026
For 2026, the IRS has increased the maximum amount you can contribute to a Roth IRA. These limits apply to your combined total contributions across all IRAs, including Roth and Traditional accounts.
- Under age 50: Up to $7,500
- Age 50 and older: Up to $8,600 (includes a $1,100 catch-up contribution)
You must have earned income, and you cannot contribute more than your taxable compensation for the year. Contributions for the 2026 tax year may be made through the federal tax filing deadline (typically April 15, 2027).
The IRS announced these updated limits in its official release on 2026 retirement plan contribution limits.
For additional context on how these figures compare across retirement account types, reference our 2026 IRA contribution limits overview.
Income Limits (MAGI) for Roth IRA Eligibility
Your ability to contribute directly to a Roth IRA depends on your Modified Adjusted Gross Income (MAGI) and tax filing status.
If your income falls within the phase-out range, you may still be eligible for a reduced contribution.
Tax Benefits of a Roth IRA
Roth IRAs offer several tax advantages:
- Tax-free qualified withdrawals in retirement
- Tax-free earnings growth when IRS withdrawal rules are met
- No required minimum distributions (RMDs) during your lifetime
This makes Roth IRAs an attractive option for investors who expect to be in a higher tax bracket in the future or who want long-term tax-free growth.
Withdrawal Rules
Qualified Distributions
A Roth IRA withdrawal is considered qualified when:
- You are age 59½ or older, and
- Your Roth IRA has been open at least five years
Qualified withdrawals are completely tax-free, including earnings.
Early Withdrawals
- Contributions (but not earnings) may be withdrawn at any time without tax or penalty
- Earnings withdrawn before age 59½ may be subject to income tax and a 10% early withdrawal penalty, unless an IRS exception applies
No Required Minimum Distributions (RMDs)
Unlike Traditional IRAs, Roth IRAs are not subject to Required Minimum Distributions during your lifetime. This allows assets to remain invested longer and continue growing tax-free, making Roth IRAs a valuable tool for long-term planning and legacy strategies.
How to Open a Self-Directed Roth IRA
Opening a self-directed Roth IRA is a relatively simple process. Here is a general guide on how to open a self-directed Roth IRA.
- Determine your eligibility: Before opening a Roth IRA, ensure you are eligible to contribute.
- Complete the application: Next, you must complete an application form. You’ll need to provide your name, address, Social Security number and employment details.
- Fund the account: After your application gets approved, you will need to fund your Roth IRA. You can do this by withdrawing money from your bank account, transferring funds from an existing IRA or 401(k) or rolling over funds from a qualified retirement plan.
- Choose your investments: With a self-directed Roth IRA, you can choose from many investment options, including stocks, bonds, mutual funds and alternatives such as real estate, precious metals and private equity. You will be responsible for managing your account and making all investment decisions.
How to Diversify a Roth IRA
Diversification is a valuable investment strategy for any retirement account, including a Roth IRA. Diversification can reduce risk and increase potential returns by spreading your investments across different asset classes, sectors and geographic regions. Here are some ways to diversify a Roth IRA.
- Invest in different asset classes: Roth IRAs offer various investment options, including stocks, bonds, mutual funds, ETFs, real estate and alternative investments. To diversify your Roth IRA, consider investing in a mix of these asset classes based on your savings goals, risk tolerance and time horizon.
- Choose different sectors and industries: Within each asset class, you can further diversify your portfolio by investing in diverse industries. For example, if you invest in stocks, you can choose from sectors such as health care, technology, energy and consumer goods.
- Consider international investments: Investing in international stocks and bonds can provide exposure to different regions and economies and help diversify your Roth IRA. You can invest in international mutual funds, ETFs or individual stocks and bonds.
- Rebalance regularly: As your investments grow and change over time, frequently rebalance your portfolio to maintain your desired asset allocation and risk level. Rebalancing involves selling some investments and buying others to realign your portfolio with your investment goals.
- Seek professional advice: Diversifying a Roth IRA can be a complex process, and requesting professional advice from a financial adviser is crucial. They can help you develop a diversified investment strategy based on your unique needs and goals.
Diversification can help reduce risk and increase potential returns over the long term.
Roth IRA Alternative Investments
One of the advantages of a self-directed Roth IRA is that it allows for a broader range of investment options, including alternative investments. Alternative investments typically do not fit into traditional asset classes, such as stocks and bonds, and may have different risk and return characteristics. Here are some alternative investments that can be in a self-directed Roth IRA.
- Real estate: Self-directed Roth IRAs can invest in various real estate assets, such as rental properties, commercial properties and real estate investment trusts.
- Private equity: Self-directed Roth IRAs can invest in private companies and startups directly or through private equity funds.
- Precious metals: Self-directed Roth IRAs can invest in gold, silver and other precious metals.
- Cryptocurrency: Self-directed Roth IRAs can invest in digital currencies.
- Artwork and collectibles: Self-directed Roth IRAs can invest in artwork, antiques and collectibles.
How Does Accuplan Improve the Roth IRA?
You can do more with a Roth IRA from Accuplan. Invest beyond traditional stocks and bonds. With Accuplan Benefits Services, you can open a self-directed Roth IRA and invest in alternative assets like real estate or precious metals. Take control of your retirement with a self-directed IRA and invest the way you want.
Open a Self-directed Roth IRA Now!
Create an account online, or contact us for further information.
Frequently Asked Questions
Below are some frequently asked questions we receive regarding Roth IRAs.
Anyone can set up and contribute to a Roth IRA if they meet the following eligibility requirements.
- The account owner has received a taxable salary or wage over the calendar year.
- The MAGI of the account holder does not exceed the IRS-mandated Roth IRA income limits.
Depending on your MAGI, you may not be eligible to contribute to a Roth.
If your MAGI is below the limits decided by the IRS and you have earned income in the contribution year, you may put money into both a 401(k) and Roth IRA. Your MAGI will determine many different benefits you may receive. Still, for retirement accounts, it determines if you are eligible to contribute to a Roth and if you can deduct your traditional IRA contributions.
To calculate your MAGI, you’ll first calculate your adjusted gross income. Then, you’ll add any deductions specified by the IRS. MAGI is always the same or greater than your AGI.
The primary difference between these two account types is when taxes are due. Roth IRA contributions and investments are immediately taxable, while traditional IRAs delay taxes until taking distributions.
Roth IRA owners pay taxes upon contributing to the IRA but receive no tax break benefits. However, they benefit from paying zero taxes on their IRA funds when they retire.
Traditional IRAs are almost exactly the inverse. You’ll pay no taxes while contributing to the IRA, and contributions can be fully or partially tax-deductible. Taxes for traditional IRAs are then due upon retirement when you withdraw distributions.
Open a Self-Directed Roth IRA With Accuplan
At Accuplan, we offer self-directed retirement accounts, including Roth IRAs. Our self-directed IRA allows you to invest in a wide range of alternative assets, such as real estate, private equity and precious metals, which may not be available through traditional IRA custodians. We also provide educational resources and support to help you manage your self-directed IRA. Open a self-directed Roth IRA with us at Accuplan today.
