Following are some frequently asked questions about self-directed IRAs.
Allowable Investments at uDirect IRA Services, LLC Include the Following
- Residential real estate, including: apartments, single family homes, and duplexes
- Commercial real estate
- Undeveloped or raw land
- Real estate notes (mortgages and deeds of trusts)
- Life Settlements
- Promissory notes
- Private limited partnerships, limited liability companies, and C corporations
- Tax lien certificates
- Foreign currencies
- Oil and gas investments
- Publicly traded stocks, bonds, mutual funds (see our Brokerage Information)
- Private stock offerings, private placements
- Judgments/structured settlements
- Gold bullion
- Car paper
- Factoring investments
- Accounts receivable
- Equipment leasing
What Investments are Not Allowed?You can invest your IRA in anything except Life Insurance Policies and Collectibles. For more information regarding rules governing self-directed IRA or 401(k) investments, please see IRA Rules.
A self-directed IRA is a retirement account that puts you in control of choosing your IRA's investment. Unlike most retirement accounts whose investments are chosen by an account and/or fund manager, you choose what to invest in with a self-directed IRA. This allows you to diversify your retirement portfolio’s investment and maximize returns.
The IRS guidelines spell out what you cannot invest in (IRS Pub 590). This is actually by design because the list of what you cannot invest in is much shorter than what you can invest in.
Following are some of investments that are prohibited with a self-directed IRA:
- collectibles (eg, coin collections);
- S-Corp capital stock; and
- insurance contracts.
The investment possibilities with a self-directed IRA are practically unlimited. Following is small listing of what you can invest in: all forms of residential and commercial real estate, mortgages, mutual funds, stocks, private placements, notes, tax liens, trust deeds and more.
Because there are such a broad range of investment vehicles, you can structure the diversity of your portfolio any way you like.
There are a couple of ways to open a self-directed IRA.
You can print out the forms, fill them out and then fax them in. Our fax number is 714-460-5506
Contact us at 866-538-3539 and one of our knowledgeable self directed IRA account specialists will assist you in opening your self-directed IRA.
Yes, you can. You can do cash transfers, rollovers from existing retirement accounts, transfers from stock and mutual fund accounts, and transfers from brokerage accounts. How long it takes will depend on what type of account you are transferring and/or rolling over. The process can take anywhere from a few days to a couple of months. Immediately upon the funds clearing in your account, you can start investing (subject to initial statutory 7 day right of rescission).
It's that simple.
Simple politics and marketing might explain this. To explain, traditional IRA suppliers control roughly 97% of the IRA market. And, like any organized lobby, they use their marketing dollars to stay front and center with consumers.
Furthermore, IRA managers work for companies who promote certain IRA products and services. As they make their money from selling products the company promotes, it's no wonder that self-directed IRAs have not become mainstream. At uDirect IRA Services we do not sell any investments.
More and more Americans are taking control of their hard-earned retirement dollars. The internet makes it easy to conduct detailed research, get instant feedback, track investment vehicles and make informed investment decisions.