SDIRA Info and Rules

It is so important to know as much about self-directed IRA rules that you can. The more common rules that are associated with self-directed IRAs are the following:

  • No self-dealing
  • No investing in life insurance
  • No investing in collectibles
  • No investing with disqualified persons

These are just a few of the more common self-directed IRA rules. Each situation could call for slightly different rules. If you are interested in setting up a self-directed IRA or 401k please fill out the following form.

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For more information check out the following:

Self Directed IRA Brochure
Self Directed IRA -Overview
Self Directed IRA -Case Study

The rules governing a self-directed IRA are not necessarily the same as the rules governing traditional IRAs. The rules can also vary between self-directed IRAs depending on what tools are used to set them up, what tools you use within your IRA, and what you invest in. The most common instrument is the LLC (Limited Liability Company) and there are many reasons why investors choose it. Whatever you choose, remember that your money grows faster with your scrutiny.

The rules governing IRAs are the product of federal legislation and the yearning of major financial institutions. The federal laws and your plan document are the only constraints on your IRA. In practice, your plan document has the most effect on how you can invest your IRA’s funds. The main reason IRAs have the reputation of being safe but restrictive is because the first generations of plan documents were written that way.

The reason investors so often form Limited Liability Companies within their IRAs is because of the extent of control they can gain over their investments. Rather than asking their IRA administrators every time they want to make an investment, and paying the attached fees, they can maintain checkbook control over their IRA investments, and make the investments themselves. The avoidance of fees and the freedom of investment are the self-directed IRA, LLC’s big selling points.

You must first find a custodian who will take custody of your IRA and let you be in charge of it (banks and other large financial institutions usually will not). Companies that specialize in setting up self-directed IRAs (like Accuplan) often have favorable determination letters for their products, simplifying the entire process.