Unlock Financial Freedom: A Comprehensive Guide to Self-Directed IRAs with IRAR Trust Company
What is a Self-Directed IRA?
A Self-Directed IRA (SDIRA) is a powerful retirement account that lets you break free from traditional investments like stocks and mutual funds. Instead, you gain the freedom to invest in alternative assetssuch as real estate, private loans, tax liens, and even LLCs. Unlike standard IRAs, a self-directed account puts you in control—letting you diversify your portfolio and potentially maximize returns.
Why Choose a Self-Directed IRA?
The stock market isn’t the only path to retirement wealth. With an SDIRA, you can:
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Diversify into tangible assets like rental properties or raw land.
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Invest in niches you understand, such as private ventures or commercial real estate.
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Build tax-advantaged wealth while avoiding prohibited transactions.
Allowed vs. Prohibited Investments in SDIRAs
The IRS doesn’t provide a list of approved SDIRA investments, but it does ban certain assets. Here’s the breakdown:
Allowed Investments:
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Real estate (residential, commercial, land)
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Private equity and joint ventures
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Promissory notes and tax lien certificates
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LLCs (for checkbook control IRAs)
Prohibited Investments:
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Collectibles (art, antiques, rare coins)
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Life insurance policies
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S-Corporations
3 Critical SDIRA Rules to Avoid Penalties
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No transactions with disqualified persons (e.g., family members, yourself).
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No personal benefit from IRA assets before retirement.
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Avoid prohibited investments like life insurance.
Breaking these rules can trigger severe tax penalties. Always consult a financial advisor before making complex moves.
How to Set Up a Self-Directed IRA with IRAR
IRA Resources, Inc. (IRAR) simplifies SDIRA administration. Follow these steps:
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Open an account: Transfer or roll over funds from an existing IRA/401(k).
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Choose your strategy:
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Direct Purchase: Buy assets outright with IRA funds.
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Partnering: Combine funds with other investors (e.g., family IRAs).
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Leverage: Use a non-recourse loan for real estate (subject to UBIT tax).
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Checkbook Control: Create an LLC for streamlined investing.
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Submit documents: IRAR handles paperwork and compliance.
Real-World Example: Buying Rental Property with an SDIRA
Meet William, who used his SDIRA to purchase a $250,000 rental property:
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His IRA paid all-cash, funded by a 401(k) rollover.
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Title and rent payments were managed under “IRA Resources FBO William Jones.”
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All expenses (taxes, repairs) were paid directly from the IRA.
This case study highlights the importance of titling assets correctly and avoiding personal benefit.
What If Your IRA Lacks Funds?
No problem! IRAR offers solutions:
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Roll over from another retirement account.
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Non-recourse loans (ideal for real estate).
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Partner with others (non-disqualified persons only).
Why Partner with IRAR Trust Company?
With 20+ years of expertise, IRAR provides:
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Hassle-free administration for alternative assets.
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Zero investment promotions—your choices, your control.
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Dedicated support to ensure IRS compliance.
Ready to take charge of your retirement? Contact IRAR at 1.888.322.6534 or visit IRAResources.com to start your SDIRA journey today!