Self-Directed IRA Account
Self-Directed Traditional IRA
Tax Benefits
Tax Deferred Contributions
Potential Lower Tax Impact
Defer income to retirement, when you may be in a lower tax bracket, helping reduce your overall tax burden.
Tax-Deferred Growth
Investment gains return to your IRA tax-deferred, supporting long-term growth.
Contributions
Contribution Limits
| AGE GROUP | 2025 Limit | 2026 Limit |
|---|---|---|
| Under Age 50 | $7,000 | $7,500 |
| Over Age 50 | $8,000 | $8,600 |
- The contribution deadline is April 15th
- There are no income limitations to contribute, but your Modified Adjusted Gross Income (MAGI) determines if your contributions are tax-deductible
- 2026 Contribution and Phase Out Range Guide
Distributions
- Distributions are penalty-free after age 59 ½
- Distributions are taxed as ordinary income
- Required Minimum Distributions (RMD) will begin at age 73 for those born between 1951 and 1959, and will begin at 75 for those born in 1960 or later
Explore Account Types
- Expert Support
Types of Self-Directed IRAs
Compare the key differences between IRA Club’s self-directed IRA options in the chart below, including tax treatment, eligibility, and withdrawal rules.
| Self-Directed Investment | Traditional | Roth | SEP | Simple |
|---|---|---|---|---|
| Make any investment that is not a prohibited transaction |
yes
|
yes
|
yes
|
yes
|
| Income Tax Deductible |
yes
|
no
|
yes
|
yes
|
| Must have earned income to make new contributions to an IRA |
yes
|
yes
|
yes
|
yes
|
| Unlimited amount transferrable from one IRA account to another IRA account |
yes
|
yes
|
yes
|
yes
|
|
Unlimited Earning Limits
* using a Backdoor Roth |
yes
|
yes
|
yes
|
yes
|
| Qualified distributions are taxed as ordinary income |
yes
|
no
|
yes
|
yes
|
| Qualified distributions are income tax-free |
no
|
yes
|
no
|
no
|
|
Annual required minimum distribution |
yes
|
no
|
yes
|
yes
|
| Passes to a beneficiary | As a Traditional IRA account | As a Roth IRA account | As a Traditional IRA account | As a Traditional IRA account |
| Beneficiary can continue to invest the funds in the Inherited IRA |
yes
|
yes
|
yes
|
yes
|
| "Super" catch-up contribution |
no
|
no
|
no
|
no
|
|
Subject to probate * No, if there is a named beneficiary |
no
|
no
|
no
|
no
|
Learn more about the other types of Self-Directed Accounts we offer, or schedule a consultation with an IRA expert today.
Self-Directed IRA FAQ
A self-directed Traditional IRA is an IRA structure in which a qualified IRA custodian may permit a broader range of investments such as real estate, subject to applicable IRS rules and custodial policies. These accounts may permit certain asset types beyond publicly traded securities.
When evaluating a self-directed IRA provider, the focus is generally on the custodian’s administrative scope, fee schedule, reporting procedures, and the asset types the custodian permits or works with a self-directed IRA administrator to handle the administrative responsibilities.
This section explains how self-directed IRA structures work and what factors may affect account administration, permitted investments, fees, and compliance requirements under applicable IRS rules.
A self-directed IRA is a specialized retirement account structure that allows for a much broader range of investments than standard brokerage accounts. While brokerage IRAs are often limited by brokerage platforms to publicly traded securities, these accounts may permit certain alternative assets, such as certain real estate interests or privately offered investments.
The IRS still governs the tax status, but the account holder directs investment decisions, while the qualified IRA custodian holds and titles IRA assets, maintains required records, and issues applicable IRS reporting forms, including Form 5498 and Form 1099-R, or works with a self-directed IRA administrator that handles the administrative responsibilities.
Takeaway:
A self-directed IRA refers to an IRA structure in which the qualified IRA custodian or qualified self-directed IRA administrator may permit a broader range of investments under applicable IRS rules and custodial policies.
Evaluation of a qualified IRA custodian or self-directed administrator operating under the custodian, generally focuses on the fee schedule, administrative procedures, reporting practices, customer service, and the types of assets the custodian permits under applicable IRS rules and custodial policies. This review may include whether the custodian or administrator administers the specific asset type involved, such as certain real estate interests or precious metals permitted under federal tax rules.
Fee disclosures, transaction charges, account maintenance fees, and recordkeeping procedures are commonly reviewed when comparing custodial options.
Takeaway:
A qualified IRA custodian or self-directed administrator is generally evaluated based on the asset types the custodian permits, the custodian’s administrative scope, their customer service, and the fee and reporting structure applicable to the account.
Self-directed IRA fees generally fall into two categories: flat-rate annual fees or asset-based fees that scale with your account value. Flat-rate fee structures generally involve a fixed annual charge, while asset-based fee structures generally vary according to account value or asset level. You may also encounter per-transaction fees, wire fees, and setup charges that vary significantly between providers. IRA Club has a flat-fee fee model.
Takeaway:
Self-directed IRA fee structures commonly include flat-rate annual fees, asset-based fees, and transaction-related charges, depending on the qualified IRA custodian’s administrative model.
Yes, real estate is one of the most common investments held within self-directed IRAs when permitted by the qualified IRA custodian and applicable IRS rules. You can use your IRA funds to purchase certain residential property interests, commercial real estate, or land, depending on the account structure and custodial policies.
In this structure, the IRA owns the property, and expenses and income generally flow through the IRA. You cannot live in the property or use it for personal business, as this would violate IRS rules.
Takeaway:
Real estate may be held in a self-directed IRA when permitted by the qualified IRA custodian and applicable IRS rules, but IRA-owned property must remain separate from personal use and other prohibited transactions.
Cryptocurrency may be held in a self-directed IRA when the qualified IRA custodian permits digital asset investments and the investment is administered under applicable IRS rules and custodial policies. Many modern custodians offer integrated platforms that allow digital asset transactions directly within your retirement account.
Digital asset availability depends on the qualified IRA custodian, the account structure, and the specific asset types the custodian permits. Transactions involving cryptocurrency in an IRA remain subject to applicable IRS rules, including prohibited transaction restrictions under Internal Revenue Code §4975.
Takeaway:
Cryptocurrency may be held in a self-directed IRA when permitted by the qualified IRA custodian and applicable IRS rules, with digital asset administration and availability depending on the custodian’s policies and account structure.
How We Help
Navigating IRS rules can feel overwhelming, but you’re not alone.
Our team provides the expertise you need to stay compliant.
Expert Guidance
Each client receives an IRA Club representative to ensure your account remains compliant.
Proactive Updates
Stay informed about regulatory changes and best practices to safeguard your assets.
Peace of Mind
Flat fees and clear communication. With our team on your side, you can focus on building your financial future without worrying about hidden costs or the fine print.
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