Talk to your tax advisor before making a decision. This guide is for information only, not financial, tax or legal advice. Consult your own professional advisors about your account, eligibility and proposed investment.
Ask these before you move the money
| What are all the fees? | Ask about setup fees, annual fees, and whether charges depend on the account’s value. |
|---|---|
| How is an investment approved? | Find out the paperwork, how funding works, and whether checkbook control is offered. |
| What investments are restricted? | Say you are considering real estate or private loans, and ask what the account can hold. |
| Can this account roll over? | Not every retirement account is eligible. Ask your financial advisor and the self-directed IRA company. |
| When will funds be available? | Account setup and investment approval take time. Know the timeline before you commit to a deal. |
The self-directed IRA, in plain language
A self-directed IRA is a retirement account with more flexibility in choosing investments. It lets you look beyond the usual stocks and other traditional investments while retaining the retirement account’s tax benefits.
Real estate is one possibility: commercial property, income-generating rentals and rehabs. Another is private lending through promissory notes secured by mortgages. Other possibilities include tax lien certificates, limited partnerships, LLCs, Sub-C corporations, real estate options and some types of precious metals, alongside traditional investments.
These are possibilities to discuss with your advisors and custodian, rather than a statement that every account can hold every investment.
How the money moves
- 01 · Retirement fundsAsk whether your existing IRA or 401K is eligible to roll over.
- 02 · Self-directed accountYour custodian handles the account and the investment process.
- 03 · Property or loanThe account invests in real estate or a real estate lending opportunity.
Are there restrictions?
Yes. There are restrictions on what you can do with real estate you buy and hold, the types of precious metals you can invest in, and what your custodian will allow. Do your homework before committing funds.
What does a custodian do?
The custodian is usually the self-directed IRA company holding your account. It acts as the go-between when you make an investment. Custodians have different guidelines, approval processes, fees and timelines.
Some arrangements offer “checkbook control,” which lets you write checks from the self-directed account. Ask your advisors how an arrangement would work for you before choosing it.
You can start your research with Guidant Financial, Equity Trust and Entrust. Compare their current offerings, costs and investment restrictions directly.
Learn first. Then look at the deal.
Take time to understand the pros and cons and the fit with your retirement plans. I work with investors looking at investment properties in Orange County and surrounding areas, including rentals, and I can discuss how I work with qualified private lenders.
If you want the investing side without the retirement-account rules, start on the investors page or the investment consulting page.
Questions
What is a self-directed IRA?
A self-directed IRA is a retirement account with more flexibility in choosing investments. It lets you look beyond the usual stocks while keeping the retirement account’s tax benefits. Real estate is one possibility. It is not a statement that every account can hold every investment.
What does the custodian do?
The custodian is usually the self-directed IRA company holding your account. It acts as the go-between when you make an investment. Custodians have different guidelines, approval processes, fees, and timelines.
Is this tax or legal advice?
No. Talk to your tax advisor before making a decision. This page is information only, not financial, tax, or legal advice. Confirm the setup with your custodian.
Can you look at a property with me?
I work with investors looking at investment properties in Orange County and surrounding areas, including rentals, and I can discuss how I work with qualified private lenders. The account rules still belong to your custodian and your advisors.
