Self Directed IRA FAQ
Feel the freedom of a Self Directed IRA. Get answers to frequently asked questions below. If you have additional questions or need assistance you can call to speak with one of our IRA account experts.
Self Directed IRA - Frequently Asked Questions
Q – What is a self-directed IRA?
A – A self-directed IRA is either a Traditional, Roth or SEP IRA whose custodian gives you control over your investment choices. Allowing not only investments in stocks, bonds, mutual funds and CD’s, but the allowing you the benefit of directing the investment of your tax-advantaged retirement dollars into the investments you choose. Including real estate, notes private placements, etc.
Q – What is the benefit of self-directing my IRA?
A – You can invest your tax-advantaged retirement dollars in investments you know and understand. Using your expertise to create lasting wealth for you and your family.
Q – What types of assets can be held in a self-directed IRA?
A – In this instance, it is easier to tell you what assets you cannot hold in a self-directed IRA:
- Collectibles (including works of art, rugs, antiques)
- Metals other than gold, silver and palladium bullion
- Coins (except certain U.S.-minted coins)
- Alcoholic beverages, and other tangible personal property as may be defined by the Secretary of the Treasury is prohibited.
**Please refer to IRS Publication 590 for more information.
If you have questions regarding what assets you would like to invest in with your IRA, please contact us.
Q – What is the “prohibited transaction” and how does it affect my self-directed IRA?
A – Prohibited transactions are certain transactions between a retirement plan and a disqualified person. If you are a disqualified person who takes part in a prohibited transaction, you must pay a tax. (IRS.gov)
For example, an IRA holder may not:
- Receive unreasonable compensation for managing property held by the IRA
- Use the IRA as security for a loan
- Transfer plan income or assets to disqualified persons
- Lend IRA money to disqualified persons
- Borrow money from the individual retirement account
- Sell, exchange or lease property to their IRA
- Extend credit on their IRA to disqualified persons
- Furnish goods, services, or facilities to disqualified persons
- Allow fiduciaries to obtain or use the plan’s income or assets for their own interest
A disqualified person is:
- The IRA holder and his or her spouse
- The IRA holder’s lineal descendants, ascendants and their spouses
- Anyone providing services to the IRA, such as the trustee or custodian (See IRS Section 4975 for a complete list of prohibited party’s credentials)
- Investment advisers and managers
- Any corporation, partnership, trust, or estate in which the IRA holder has a 50 percent or greater interest.
Need help? contact one of our IRA experts at (702) 507-0750 or firstname.lastname@example.org
Premier Trust, Inc. does not offer investment, tax, financial or legal advice to clients. Individuals who believe they need advice should consult with the appropriate professional(s) licensed in that area.