What is a self-directed IRA (SDIRA)?
A self-directed IRA allows you to invest in alternative assets beyond traditional stocks, bonds, and mutual funds.
Self-Directed IRA Overview
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.
Self-Directed IRA Questions
Are SDIRAs more expensive than traditional IRAs?
Yes, SDIRAs typically have higher fees due to specialized custodians and additional valuation requirements for alternative assets.
Can I roll over my traditional IRA into a self-directed IRA?
Yes, you can roll over funds from traditional IRAs, 401(k)s, and other retirement accounts into a self-directed IRA.
How often do I need appraisals for SDIRA assets?
Appraisals are required for initial purchases, annual reporting, and any transactions involving the assets.
Need valuations for your self-directed IRA assets?
USPAP-compliant valuations for all SDIRA asset types.