Account Types - IRA Club


Types of Self-Directed Accounts


A Self-Directed IRA is the “true” form of IRA. When Congress created the Qualified Retirement Plans (such as the IRA) back in 1974 the idea was simple: to allow you to grow your investment faster by giving IRA accounts TAX-FREE STATUS during the accumulation period. However, some IRA companies have placed unnecessary restrictions on IRA owners, limiting the types of investments that their IRA can hold. It’s important to note that these limitations are not mandated by Congress and are instead artificial.

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At IRA Club, we believe in empowering our clients to choose investments that align with their long-term goals. We don’t place any artificial restrictions on your investments, providing you with the opportunity for enhanced returns.

When selecting the right account for your needs, it’s important to consider factors such as your age, desired retirement age, tax bracket, and contribution capability. We recommend seeking the services and advice of a tax professional to help you make informed decisions. Trust us to help you build the retirement portfolio of your dreams.

Self-Directed Investment Traditional Roth SEP Simple
May make any investment that is not a prohibited transaction checkmark checkmark checkmark checkmark

Money In

Contributions Income tax-deductible Not income tax-deductible Income tax-deductible Income tax-deductible
To make a new contribution to an IRA Must have earned income Must have earned income Must have earned income Must have earned income
Transfers from one IRA account to another IRA account Unlimited Unlimited Unlimited Unlimited
Earning limits Unlimited Unlimited using a backdoor Roth Unlimited Unlimited

Money Out

Qualified distributions are: Taxed as ordinary income Income tax-free Taxed as ordinary income Taxed as ordinary income
Must take an annual Required Minimum Distribution checkmark

Must start at age 72
x

No RMD until after owner passes
checkmark

Must start at age 72
checkmark

Must start at age 72

Passes to a beneficiary As a Traditional IRA account As a Roth IRA account As a Traditional IRA account As a Traditional IRA account

When You Pass Away

Can your beneficiary keep investing the funds in the Inherited IRA? checkmark checkmark checkmark checkmark

Super Bonus for all IRAs

Will the IRA be subject to probate?

x

IRAs do not go through probate if there is a named beneficiary

x

IRAs do not go through probate if there is a named beneficiary

x

IRAs do not go through probate if there is a named beneficiary

x

IRAs do not go through probate if there is a named beneficiary

Traditional IRA

Roth IRA

SEP IRA

SIMPLE IRA

Health Savings Account

It’s important to consider factors like your age, retirement goals, tax bracket, and contribution capability when choosing the type of account that works best for you. Consulting with a tax professional can also be helpful. 

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Benefits of a Self-Directed IRA

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