Are SDIRAs more expensive than traditional IRAs?

Understanding Self-Directed IRAs

A self-directed IRA (SDIRA) is a retirement account that gives you control over investment choices beyond the typical options available through traditional brokerage accounts.

What Makes SDIRAs Different

Unlike traditional IRAs limited to stocks, bonds, and mutual funds, SDIRAs allow investments in:

• Real estate and property
• Precious metals
• Private equity and venture capital
• Cryptocurrency
• Tax liens
• Private business interests
• Promissory notes

Required Valuations

Alternative assets held in SDIRAs require regular professional appraisals for:

• Initial acquisition valuation
• Annual fair market value reporting
• Required minimum distributions (RMDs)
• IRA conversions and transfers
• Compliance documentation

Custodian Requirements

SDIRAs must be held through specialized custodians who understand alternative assets. These custodians handle administrative tasks while you direct investment decisions.

IRS Compliance

All SDIRA investments must comply with IRS rules, including prohibited transaction restrictions. Professional valuations ensure accurate reporting and prevent compliance issues.