Self-Directed IRA (SDIRA) Deciphered

The term “Self-Directed IRA” (SDIRA) has become fairly common over the last several years. But what is it, really? Aren’t all IRA’s “Self-Directed” meaning the client controls the investment direction? Essentially, the answer is yes, with a few exemptions.

The term “Self-Directed IRA” that most people refer to today relates to the type of assets in the account. Typically, it will be anything other than the stock, bonds and mutual funds. We have client’s that are invested in real estate, rental property, farmland, LLC’s, LP’s, PPM’s, Private Stock (to name a few). Anything other than life insurance and certain collectibles is prohibited by the IRS as an IRA investment. The IRS also requires the IRA to have a qualified trustee or custodian to hold the IRA assets on behalf of the IRA owner. Premier Trust meets the definition of a “qualified trustee or custodian” according to IRC 408(n).

If you have any questions or would like any information email us at info@premiertrust.com or call us at 702-577-1777. Work with a Company You Can Trust.

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