While there are significant benefits associated with self-directing your IRA investments, there are various IRS rules and regulations that must be strictly adhered to. While investing in assets that you feel the most comfort with is exciting, there is increased liability you face related to very strict IRS rules governing IRA plans. Should these rules discourage you from self-direction….no. However, as the IRA account manager, you must assume the responsibility of operating your plan in full compliance with all IRS rules. Not only must you assume due diligence in reviewing investment options for the benefit of your IRA, you must also ensure that the investment complies with these important IRS rules.
Fulcrum Self Directed believes that all IRA account owners must review all transactions and record-keeping responsibilities of the IRA with a professional tax or legal professional. While Fulcrum Self-Directed believes that a client should consult with their local professional, Fulcrum Self-Directed is able to refer clients to such professionals as requested, and needed. We strive to educate our clients on the rules governing these accounts and how it may impact their investment strategies. It is of vital importance that the IRA account owner take this responsibility seriously when establishing their self-directed IRA.
While not intended to replace your tax or legal professional, one may learn more about the rules governing your self-directed IRA in IRS/DOL Regulations.