A Self-Directed Individual Retirement Account (SDIRA) is a type of individual retirement account that provides investors with greater control over their investment choices compared to traditional IRAs.
With a Self-Directed IRA, the account holder has the ability to invest in a broader range of assets beyond the typical options available in conventional IRAs, such as stocks, bonds, and mutual funds.
Unlike traditional IRAs, which are often limited to a specific set of investment options offered by the custodian, SDIRAs allow for a wide range of alternative investments.
This can include real estate, private equity, precious metals, private loans, and more.
Like traditional IRAs, contributions to a Self-Directed IRA may be tax-deductible, and earnings within the account can grow tax-deferred until withdrawals are made during retirement.
Roth Self-Directed IRAs offer tax-free withdrawals on qualified distributions, but contributions are made with after-tax dollars.
Given the diverse investment options and potential complexities involved in managing a Self-Directed IRA, investors are advised to conduct thorough due diligence and,
in many cases, seek professional advice from tax experts, financial advisors, or legal professionals familiar with self-directed retirement accounts.
