Self-Directed IRAs (SDIRA) can be a Roth IRA, Traditional IRA, SEP IRA, HSA, Solo 401(k) or any type of tax advantaged account that can invest into alternative assets. Open the account type that makes sense for your goals and start self-directing today.
A “Self-Directed IRA (SDIRA)” is a marketing term used by the industry to describe any retirement account or other tax advantaged accounts (health, education) that are held at an IRA custodian who allows investments in alternative assets. By law, Individual Retirement Accounts (IRAs) can invest in just about any asset, with some restrictions. That means when your IRA is set up with an SDIRA custodian like Directed IRA, you’ll have the ability to invest in non-traditional assets like real estate, notes, cryptocurrency, small business/LLCs, and private funds.
Your self-directed account can be a Roth or Traditional IRA, Crypto IRA, SEP IRA, Inherited IRA (Beneficiary IRA), Solo 401(k), Health Savings Account (HSA), Coverdell Education Savings Account (ESA), or Checkbook IRA LLC. Each of these account types follow the same IRS rules as regular IRAs (Brokerage IRAs) and receive the same tax advantages.
The appeal of self-directing a retirement or savings account is that individuals can take full control of where their IRA funds are invested. This dramatically increases your investment options—maximizing your opportunities for high returns. You’ll no longer be restricted by a provider who only allows investments in the publicly available securities that they sell (stocks, bonds, and mutual funds).
Choose a day and time that works for you, and our team will be in touch. Whether you’re setting up a self-directed IRA for the first time, transferring from another provider, or exploring some more advanced strategies, Directed IRA is here to support you every step of the way.
Open an Account
Open an account with a self-directed IRA custodian like Directed IRA in as little as 5 minutes.
Fund an Account
Fund your account by making a new contribution or by rolling/ transferring funds from another retirement account to Directed IRA.
Make an Investment
Invest your account into your planned self-directed investment.
Yes, anyone eligible to open tax-advantaged accounts like Traditional IRAs, Roth IRAs, SEP IRAs, Solo 401(k)s, HSAs, ESAs, or Inherited IRAs can open a self-directed version of these accounts, assuming they meet IRS rules for contributions and eligibility. High-income earners who exceed income limits required for direct Roth contributions can utilize the Backdoor Roth IRA strategy in order to make annual contributions to their Roth Account.
When managing a self-directed IRA, it’s essential to understand the prohibited transaction rules outlined in IRC Section 4975. These rules don’t limit what your IRA can invest in but rather dictate whom your IRA can transact with. Essentially, they prevent your retirement account from engaging in transactions with individuals deemed “disqualified persons.” For example, your IRA couldn’t buy a rental property from your mom and rent it to your son. Buying real estate from your mom is a transaction and your mom is a disqualified person and is restricted. Also, if your IRA owns real estate, it can’t rent it, also a transaction, to your son as your son is also a disqualified person. Your IRA could, however, buy real estate from your friend and rent it to your cousin as your friend and cousin are not disqualified persons under the rules.
A disqualified person includes the account owner, their spouse, children, parents, and spouses of children. Understanding these restrictions is crucial to ensure compliance and to protect the tax-advantaged status of your retirement account.
Choosing the right account type depends on your financial goals, tax strategy, and personal situation. Factors like your current income, retirement goals, and investment preferences all play a role. We strongly encourage you to consult your financial or tax advisor to determine the account that aligns best with your retirement strategy. If you’re having trouble understanding the differences between SDIRAs and need help setting one up, book a call with our team.
Directed IRA helps individuals and professionals take control of their retirement using self-directed retirement accounts—acting as their licensed and regulated custodian. Although SDIRAs operate under the same IRS rules as standard IRAs, they require a specialized custodian or trustee to administer the account and ensure compliance with tax regulations.
Directed IRA (Directed Trust Company) does not conduct due diligence on investments, platforms, sponsors, or service providers. Additionally, it does not sell investments or offer legal, tax, or investment advice. As an account holder, you are responsible for performing due diligence on your investments and avoiding prohibited transactions. Learn more about Directed IRA.
Self-Directed IRAs offer the flexibility to invest in alternative assets like real estate, private businesses, precious metals, and cryptocurrencies. For an expanded list of what’s possible in your IRA, visit our Investment Types page.
Yes. The IRS does not limit the total number of Self-Directed IRAs an individual can own. However, annual contribution limits apply to the total of all your IRA accounts and vary depending on the type of account you own. Managing multiple accounts requires careful record-keeping to ensure compliance with IRS rules and to avoid potential penalties. Always consult with a financial advisor to determine the best strategy for your retirement goals.
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Directed IRA is a Tradename of Directed Trust Company. Directed Trust Company performs the duties of a directed custodian, and as such does not provide due diligence to third parties on prospective investments, platforms, sponsors or service providers, and does not sell investments or provide investment, legal, or tax advice. Directed Trust Company is not an FDIC-insured financial institution. Alternative investments are not insured by the FDIC; are not deposits or other obligations of, or guaranteed by Directed Trust Company or any of its divisions; and are subject to investment risks, including possible loss of the principal amount invested. While uninvested funds in certain types of Directed Trust Company accounts may be eligible for FDIC pass-through deposit insurance, certain conditions must be satisfied for such insurance coverage to apply. 2025 Directed Trust Company
Mat Sorensen, Attorney, CEO, and Founder of Directed IRA, wrote the #1 book on self-directed IRAs – selling over 50,000 copies nationwide. The Self Directed IRA Handbook is a comprehensive guide written for both investors and advisors alike. Download your free copy today!
