Decide How Your Money Is Invested With A Self-Directed IRA
Self-directed IRAs provide the type of benefits that many investors are looking for, such as tax advantaged savings and flexibility.
Today’s investors have access to data and real-time news in just about any market. This has made it possible for individuals to take part in the investments big business has done for the past few decades.
With a self-directed individual retirement account, you decide how your money is invested without the limitations imposed on IRAs, such as a 401(k) or company-sponsored retirement account. Investments made using IRAs complement retirement income from these types of accounts, including Social Security benefits and are important resources for households regardless of income or wealth.
Why Self-Directed IRAs?
Self-directed IRAs provide a unique way for savvy investors to diversify their retirement assets. If you are new to self-directed IRA investing, you may choose to select an advisor who can help with the process. Although we do not advise individuals on the asset selection process, we do have several tools that your advisor can use to ensure your investment interests reach their fullest potential.
Self-directed IRAs provide a way for individuals to continue to save for retirement while avoiding unnecessary taxes. A true self-directed IRA custodian, such as IRA Services has the flexibility to enable individuals, advisors and institutions to invest in a vast array of alternative investments.
What Are Self-Directed IRAs?
A self-directed retirement account allows you to choose the method for investing your money. The flexibility of IRA accounts allows investors to place money into any asset permitted by the IRS, including traditional and alternative investments.
Alternative investments are bought, sold, and maintained through a self-directed IRA while earning tax benefits on capital gains. They allow the investor to acquire alternative assets that maintain the benefits of tax-free or tax-deferred growth.
Historically, banks, brokerage firms, and insurance companies controlled the type of investments made with IRAs and 401(k)s. They offered a more traditional approach to investing by limiting options to publicly traded stocks, bonds, and mutual funds.
Self-directed IRAs extend to a diverse set of alternative investments and allow the investor to purchase alternative assets through the IRA.
Types of Self-Directed IRAs
A Traditional IRA is a tax-deferred retirement savings account. Dividends, interest payments and capital gains compound each year allowing a Traditional IRA to grow faster than a taxable account.
A Roth IRA is a tax-free retirement savings account that can be funded with after-tax dollars. Funds deposited continue to grow tax-free and can be withdrawn with no penalty.
A SEP IRA is a tax-deferred retirement savings account for self-employed individuals and small business owners. Contributions are tax-deductible until investments are withdrawn.
A Simple IRA is a tax-deferred incentive match plan for employees. Contributions are tax-deductible, and your investment grows tax-deferred until withdrawn.
A Rollover IRA is a traditional IRA that is used by clients who have had multiple employers. Assets accumulated in employer-sponsored accounts such as a 401(k) are sometimes fortified into a single account.
A Self-Employed 401(k), also referred to as an Individual 401(k), is a retirement plan funded with after-tax dollars. There are two versions of an Individual 401(k). Both versions are for sole proprietors who have no employees.
What are the alternative assets IRA Services Trust Company Allows?