Portfolio Diversification– Self Directed IRAs allow investors to diversify their retirement portfolios into alternative assets which are generally unavailable to them through a bank or brokerage house. Investors can take a more balanced approach by diversifying their IRAs into alternatives in addition to market-based products.

Tax advantaged growth– Self Directed IRAs enjoy the same tax benefits of standard IRAs. Self Directed IRAs combine the tax savings inherent in retirement accounts along with the tremendous growth potential of alternatives.

Freedom from market fluctuations– Investors seeking relief from precipitous market fluctuations related to Wall Street investments benefit from Self Directed IRAs which can invest in assets with steady and reliable income (such as rental real estate, promissory notes, tax liens, etc.).

Capital Source– Self-Directed IRAs are the solution for individuals seeking an additional source of capital for desired investments. Many investors would like to enter the alternative market however their personal funds are tied up. A Self-Directed IRA allow these investors to access such investments with retirement funds.

A Self-Directed IRA allows individuals to invest their retirement money in alternative assets which are generally not available to them in a standard IRA. Self-Directed IRAs offer asset choices that go way beyond market-based products. They give people the power to put their money in investments which make sense to them personally.

The IRS requires that all IRAs be held by a qualified third party such as a bank, trust company or other authorized custodian.

Accountholders can establish an IRA at a local bank or at a brokerage house, however they will then be limited to market-based products. Banks and brokerage houses generally do not custody alternative investments in IRAs due to the administrative burden involved.

Self-Directed IRA custodians are the solution for people interested in investing their IRA into non-traditional assets. Self-Directed IRA custodians specialize in custodian alternative assets and performing the labor-intensive duties associated with such transactions.

Some of a Self-Directed IRA custodian’s responsibilities include:

• Maintaining IRA agreements and forms subject to the regulations of the IRS and the U.S. Department of Labor
• Accepting, documenting, and recording contributions, transfers and rollovers from other IRAs/retirement plans
• Executing account owners’ investment instructions by sending funds from the IRA to the client selected investments
• Gathering, executing, and holding documents such as subscription agreements, operating agreements, offering documents, promissory notes, certificates, and other documents of ownership by the IRA
• Receiving and recording income from the assets held in the IRA
• Executing accountholder’s instructions to sell, withdraw from or liquidate investments held in the IRA
• Facilitating, as directed by the accountholder, distributions from the IRA to the accountholder or transfers to other IRAs or retirement plans
• Performing tax reporting including IRS Forms 1099-R and 5498
• Providing statements to accountholders
• Complying with all applicable State and/or Federal regulations governing IRA Custodians

Yes, Self-Directed IRA custodians accept rollovers from Qualified Plans such as 401(k)s or 403(b)s.

Please contact your current Plan Administrator to verify whether your account is available to be rolled into an IRA.

The majority of Plan Administrators allow accounts to be rolled over upon separation of service or retirement age (whichever is sooner).