Everything You Need to Know About Self-Directed IRAs

A self-directed IRA is simply a kind of retirement account (similar to traditional IRAs or Roth IRAs) that allows you to invest in a broader selection of asset classes. 

A trustee or custodian still administers the IRA, but it is managed directly by the account holder, hence why it is called “self-directed.” 

You can either open up a self-directed traditional IRA, in which you make tax-deductible contributions, or a self-directed Roth IRA, in which you make tax-free contributions. 

Like regular IRAs, you need to follow the eligibility requirements and contribution limits to participate. 

For example, in 2022, the maximum contribution limit is $6,000 (or $7,000 if you're 50 years old or older), and you can only withdraw funds once you reach 59 and a half years old. 

Typically you can go to a brokerage firm to open up a regular IRA, but many mainstream brokerages don't offer the option of opening a self-directed IRA. 


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