“Why Didn’t Someone Tell Me About This 40 Years Ago?!”
IRA accounts have been around for almost 40 years, but most people are shocked to learn that a self-directed IRA is not new.
IRAs have never been prohibited from investing in alternative assets.
While there certainly are investments that cannot be made with IRA funds, IRS and DOL Prohibited Transaction regulations have never dictated that an IRA cannot be self-directed.
Self-Directed IRA Defined
This part is a bit dry, but stick with me. The IRS defines an Individual Retirement Arrangement, or what is commonly referred to as the Individual Retirement Account, as a specifically established trust account or custodial account set up in the United States for the exclusive benefit of you or your beneficiaries. The account is created by a written document.
You will notice in the definition that there is no distinction between the different types of IRAs or any reference to self-direction. While there is no reference to self-direction, the IRA account manager may elect to self-direct provided they comply with all IRS regulations governing IRAs.
“Self-Direction” simply provides you, the IRA account owner, the ability to invest as you see fit as long as your investments fall within the IRS regulations governing IRAs. Your ability to have full control of your investing now permits you to invest in both “traditional” and “non-traditional” assets. As such, your IRA can invest in assets ranging from real estate to stocks and bonds to precious metals…and many more types of alternative assets.
Back to the Good Stuff…
Let’s say you don’t qualify for a self-directed 401(k) plan because you’re not self-employed. Maybe you’re retired…maybe you have a Roth IRA that can’t be rolled over into a qualified plan. Regardless of the reasons, can you still self-direct and take full control of your retirement assets!
A whole world of non-traditional or alternative investments are available to you.
No more being told by your custodian that you should be happy investing in just stocks, bonds and mutual funds.
No more feeling handcuffed with how you can invest your retirement funds. You can have full checkbook control with a Fulcrum Self-Directed IRA LLC.
So, are there other IRA products that can be self-directed?
Of course! You can self-direct a Traditional IRA, Roth IRA, SEP IRA and SIMPLE IRA.
In fact, provided your child(ren) qualify by having earned income, your children can even have a self-directed IRA established for them.
Maintain an IRS-compliant IRA plan that provides you this freedom and flexibility! Invest in real estate, precious metals, hard money loans, and more. Control your self-directed IRA checkbook and manage your IRA LLC as the manager of your IRA LLC. Invest as you see fit!
With the Fulcrum Self-Directed IRA account, you can achieve all of this! And, since your IRA is an IRS-permitted retirement plan, you will enjoy the following benefits:
Contribution Limits up to potentially $5,500 (under the age of 50) or $6,500 (over the age of 50). If you self-direct a SEP IRA, you can potentially contribute up $52,000.
Have exclusive and full “checkbook control” of your plan’s assets as manager of your IRA LLC.- Invest in any asset not specifically excluded by IRS and DOL regulations.
Secure investment returns in either a tax-deferred or tax-free basis (Roth).
Low custodian costs.
Limited annual reporting requirements.
Through Fulcrum Self-Directed, enjoy low IRA custodian fees and feel comfortable that the IRA custodian will not only be an IRS-approved custodian but also FDIC insured. You will also have the flexibility of making pre or post-tax (Roth) contributions, converting IRA or other plan funds into a Roth IRA and receiving investment gains in either a tax-deferred or tax-free basis.