Self Directed IRA Companies
As an investor, you should play an active role in choosing, managing, and reviewing your accounts. For maximum control and increased returns, consider transferring your current retirement account into a self-directed IRA or 401k. With a self-directed IRA/401(k), a custodian or trustee is paid a fee to administer the account on behalf of the client, but does not make any independent investment decisions. By choosing a self-directed option, you’ll retain control of all account changes, with the custodian or trustee simply executing your instructions.
Unlike traditional bank- or brokerage-based IRA/401(k)s, which usually limit investments to stocks, bonds, or mutual funds, self-directed IRA/401(k) accounts allow investments in real estate, private note/businesses, property tax liens, and other alternative assets.
With the flexibility of self-directed accounts, real estate investors can potentially protect against the loss of principal while generating better-than-market rate returns through income production and capital gains. When real estate investments are not leveraged, both income and capital gains can flow back to IRAs as tax-deferred assets (or tax-free for Roth IRAs).
The following accounts or plans can be rolled over to one or more self-directed IRA/401(k)s accounts:
- Roth IRAs
- SEP IRAs
- Coverdell Educational Savings Accounts
- Health Savings Accounts
In addition, under certain rules, you may choose to combine discretionary money with self-directed IRA/401(k) funds in the same investment, as long as the funding occurs simultaneously on the same date.