What Can a Self‑Directed IRA Invest In?
A Broader View of What’s Allowed
At Directed IRA, you can invest in nearly any asset type permitted by the IRS. Here are some of the most common categories our clients use:
- Real Estate – From single-family homes to commercial property, rehab projects, and syndications
- Private Lending / Promissory Notes – Invest in promissory notes and private lending—opening the door to opportunities like funding real estate projects, supporting emerging businesses, and financing unique assets.
- Private offerings & venture capital – Private equity, startups, family businesses, and industry-specific deals
- Checkbook IRA/LLC – An SDIRA that owns a specially structured LLC managed by you, giving direct access to funds for real estate, lending, and time-sensitive transactions.
- Cryptocurrency & Digital Assets – Bitcoin, Ethereum, and other approved digital currencies
- Precious Metals – IRS-approved bullion like gold, silver, and platinum
- Public Markets – Stocks, bonds, mutual funds, and ETFs
And more: hedge funds, private debt, limited partnerships
What You Cannot Invest In
While the list of investment restrictions is short, they’re essential:
- Collectibles: stamps, art, metals used above face value (e.g., most modern coins), antiques
- Life insurance and annuities
- S-Corporation stock (due to IRS structuring rules)
- Transactions involving disqualified persons
- Your IRA cannot transact with the following individuals or entities, or it will trigger a prohibited transaction:
- You (the IRA owner)
- Your spouse
- Your parents, children, or grandchildren
- Spouses of those lineal family members
- Entities (LLCs, corporations, trusts) where you or these individuals own 50% or more
- Your IRA cannot transact with the following individuals or entities, or it will trigger a prohibited transaction:
Engaging in prohibited transactions may result in plan disqualification or penalties.
Why These Rules Matter
These rules exist to protect retirement assets from misuse and ensure neutrality. Directed IRA serves as a neutral, passive custodian, executing your investment instructions while safeguarding compliance with IRS rules.
That means:
- We hold the asset in your IRA’s name, based on your instructions
- We process and record transactions, fees, and compliance filings
- You remain fully responsible for investment decisions and due diligence
Book a New Account Call with Directed IRA
Our entire Directed IRA team is friendly, knowledgeable, and genuinely excited to help you. Reach out to any of our specialists today and take the first step toward self-directing your IRA or Solo 401(k)!