Invest in Syndications and Crowdfunding
A syndication or crowdfunding is the pooling of capital from multiple investors. One of these investors can be your Self-Directed IRA.
Investing in syndications and crowdfunding opportunities can provide a steady stream of income for your IRA, and the best part is it’s income tax-free. Real estate syndications allow investors to pool their resources and invest in larger properties and projects than they could on their own.
Before investing, there are a few things to keep in mind:
There are multiple types of syndication and crowdfunding opportunities. Some examples include real estate such as development, rehab property, multifamily, or commercial. Real estate syndications allow investors with a Self-Directed IRA to pool their financial resources to invest in properties and projects much bigger than they could afford or manage on their own.
- All expenses associated with the investment must be paid using the funds in your IRA account. All revenue must go back to the IRA account. All expenses must be paid from funds in your Self-Directed IRA.
- Keep in mind the duration of the project. A longer term means lower liquidity.
- The investment is made by the IRA – not you. Remember to title the investment correctly.
- Consider the allocation of your commitment, cost, and time.
- The purchase should not constitute a prohibited transaction.
Start Investing with Your IRA Today
Personalized service from a designated IRA specialist. Contact us to learn more!
Investment Options
We provide passive, turnkey, real estate investment opportunities to individual investors all over the world! We currently manage thousands of properties all over the U.S. for investors just like you. We buy hundreds of single family homes every year that we fix up, rent out, and manage. Unlike our competitors, we do NOT outsource any of our businesses
Vintage Capital gives accredited IRA/SDIRA investors rare access to institutional-quality real-estate credit and manufactured housing community (MHC) opportunities. Our team has managed $200MM+ across private real estate and credit and brings a dual operator–allocator lens to sourcing, underwriting, and structuring.
You can email Vintage’s Head of Investor Relations at [email protected]
Remember
An IRA Club Self-Directed IRA may make almost any investment for your future. IRA Club provides our members with a no-cost review to help you avoid making one of the few prohibited transactions. Contact IRA Club today or check out our unique investing process. Be advised that IRA Club does not evaluate, review, monitor, recommend, warrant, guarantee or otherwise endorse the legality, tax treatment, propriety, performance or reliability of any investment, service, statement, opinion or other representation provided with respect to the investment opportunities listed on its site or their sponsors or providers. IRA Club has no financial arrangement, partnership, joint venture, or other affiliation with the sponsors or providers of these investments. IRA Club shall not be liable for any misinformation, misrepresentation, negligence, act, omission, investment results or any wrongdoing with respect to any of these investments or their sponsors or providers.
Crowdfunding Investments with IRA FAQ
- Annual contribution limit: $7,000 in 2025, and $7,500 for 2026
- Catch-up contributions: $1,000 in 2025 and $1,100 in 2026 for individuals age 50 or older
Rollovers and transfers fall under separate IRS rules and do not count toward annual limits. SDIRAs must also comply with IRS custody requirements and the prohibited transaction rules outlined in Internal Revenue Code §4975. A qualified IRA custodian or administrator holds SDIRA assets, keeps records, and handles required IRS reporting, including Forms 5498 and 1099-R. Since crowdfunding investments may involve non-publicly traded securities, investors should review custodian-specific procedures and understand the documentation, valuation, and compliance requirements for private investments. This guide explains how SDIRAs work with crowdfunding platforms, the IRS rules involved, and the responsibilities of account holders. By understanding custodial procedures, compliance with prohibited transaction rules, and documentation needs, individuals can determine whether the operational and regulatory requirements of private-market investments align with their retirement strategy.
A Self-Directed IRA (SDIRA) is a type of Individual Retirement Account that allows a broader range of IRS-permitted assets. It follows the same IRS contribution limits, tax rules, and distribution requirements as a Traditional or Roth IRA. However, it allows for a wider range of asset types, as permitted by the custodian. While standard IRAs typically hold stocks, bonds, and mutual funds, an SDIRA can include alternatives like real estate, private equity, promissory notes, and certain digital assets permitted by the custodian and precious metals that meet the fineness requirements under Internal Revenue Code §408(m).
Because SDIRAs may hold non-publicly traded assets, they require careful adherence to IRS rules for valuation, documentation, and prohibited transactions under Internal Revenue Code §4975. This structure expands the types of assets that may be held in the account, but also increases the need for ongoing compliance and due diligence.
For 2025 and 2026, SDIRAs will follow these IRS annual contribution limits:
- Annual contribution limit: $7,000 in 2025, and $7,500 for 2026
- Catch-up contributions: $1,000 in 2025 and $1,100 in 2026 for those age 50 or older.
Rollovers and transfers have separate IRS rules and do not count toward annual limits.
A qualified IRA custodian or administrator must hold the SDIRA assets, maintain records, and issue required IRS forms such as Forms 5498 and 1099-R.
Takeaway:
A Self-Directed IRA offers broader asset options than a standard IRA while keeping the same IRS contribution limits, tax rules, and custodial requirements. Whether an SDIRA is appropriate depends on factors such as the investor’s risk tolerance, ability to meet due-diligence requirements, and familiarity with IRS rules for alternative assets.
Crowdfunding is a way to raise money from many people online to support a business, project, or real estate investment opportunity. Instead of a few big investors, crowdfunding combines small contributions from many participants. Depending on the offering, investors may receive an equity interest, a debt instrument, or another form of contractual interest, depending on the structure of the offering.
In a Self-Directed IRA (SDIRA), crowdfunding is a type of private-market investment. These offerings involve assets not traded publicly, so they must meet standard SDIRA requirements for custody, documentation, valuation, and compliance with Internal Revenue Code §4975. A qualified IRA custodian or administrator must hold the asset and manage IRS reporting.
Crowdfunding platforms usually offer materials, issuer details, and transaction documents. Investors use these to do due diligence and determine whether a private offering aligns with their individual considerations and long-term objectives.
Takeaway:
Crowdfunding allows a Self-Directed IRA to participate in private-market opportunities by pooling smaller investments online. These investments must follow IRS rules for custody, documentation, and prohibited transactions.
Crowdfunding provides access to private-market investments that differ from publicly traded securities. When held in a Self-Directed IRA (SDIRA), these investments follow the same IRS rules as all IRAs. For 2025,, the annual contribution limit is $7,000, and in 2026, the limit rose to $7,500. There are catch-up contributions of $1,000 in 2025 and $1,100 in 2026 for those aged 50 or older. Rollovers and transfers have different IRS rules and do not count toward the annual limit.
Since crowdfunding involves non-publicly traded assets, holding them in an SDIRA keeps the investment within the IRA’s existing custodial and reporting framework. All IRA assets must be with a qualified IRA custodian or qualified self-directed IRA administrator. A qualified IRA custodian keeps records, manages reporting, and issues IRS forms.
Holding private offerings in an SDIRA requires careful attention to IRS rules under Internal Revenue Code §4975. This includes knowing about prohibited transactions and disqualified persons. Investors should review offering documents, valuation requirements, and custodial procedures to understand the rules that apply to holding private offerings within an SDIRA.
Takeaway
Certain crowdfunding investments may be held in an SDIRA when permitted by a qualified custodian and compliant with IRS rules. This allows individuals to include private-market opportunities in their retirement accounts while following IRS rules for custody, reporting, and prohibited transactions.
A Self-Directed IRA (SDIRA) can hold certain private-market investments when they comply with IRS rules and are supported by the qualified IRA custodian or administrator. On regulated crowdfunding platforms, offerings may include real estate equity, real estate debt, private company equity, or small-business loans. These assets differ from publicly traded securities and have unique rules for custody, documentation, valuation, and due diligence.
Before participating in any crowdfunded offering, confirm that the asset type matches IRS rules, especially the prohibited transaction rules under Internal Revenue Code §4975. Also, check that the custodian permits custody of the investment structure. Crowdfunded investments must remain under the custody of a qualified IRA custodian or administrator, who maintains records and handles IRS reporting, including Forms 5498 and 1099-R.
Since these investments involve non-publicly traded securities, individuals should review offering materials, custodial procedures, and the platform’s documentation standards. This helps individuals understand the requirements for holding the asset within an SDIRA.
Takeaway
Some crowdfunded investments—such as real estate projects, private-company offerings, or business-related debt—may be held in an SDIRA when they comply with IRS rules and are supported by a qualified custodian.
Opening a Self-Directed IRA (SDIRA) for crowdfunding starts with picking a qualified IRA custodian or qualified self-directed IRA administrator. This custodian must be able to hold alternative assets, as crowdfunding often involves privately issued securities. Choosing a custodian is crucial since all IRA assets must remain under custodial oversight and follow IRS rules on prohibited transactions, documentation, and reporting.
Next, complete the application and provide any required identification and plan details. Once the account is set up, you can fund it through a direct transfer or rollover from an existing IRA or eligible employer-sponsored plan, or with new contributions. For 2025, the annual IRA contribution limit is $7,000 and $7,500 for 2026. There are catch-up contributions of $1,000 in 2025 and $1,100 in 2026 for individuals aged 50 or older. Note that rollovers and transfers follow separate IRS rules and do not count toward these limits.
With funds in the account, the SDIRA holder can instruct the custodian or administrator to process the required documents for the crowdfunding investment. The custodian keeps custody of the asset, manages required IRS reporting (like Forms 5498 and 1099-R), and helps ensure assets are titled in the name of the IRA according to custodial procedures.
Takeaway
Setting up an SDIRA for crowdfunding requires choosing a qualified custodian or administrator, completing the account application, and funding the account through contributions, transfers, or rollovers. Understanding custodial requirements and IRS rules is key to holding private-market investments compliantly within a tax-advantaged retirement structure.
