Choosing the Right Self-Directed IRA
So you’ve decided to take more control of your retirement strategy? Great. That’s a big first step. A Self-Directed IRA opens the door to alternative investments. Real estate, private loans, precious metals, and more; they’re all here. It puts you in the position to decide what goes in your account. But before you start investing, there’s one decision that sets the foundation: choosing the right Self-Directed IRA for your goals.
There isn’t just one type of Self-Directed IRA. In fact, the term refers more to how the account is managed—specifically, that it allows alternative assets—than to a single product. You still need to choose between Traditional, Roth, SEP, and Solo 401(k), depending on your income, work situation, and retirement goals.
Start Your Self-Directed IRA Selection Thinking About Taxes (Or Lack Thereof)
The biggest question when selecting an IRA is when you want to deal with taxes. Now? Later? With a Self-Directed Traditional IRA, your contributions are usually tax-deductible. You don’t pay taxes on your investment gains as they grow. But you will owe income tax when you take distributions in retirement. That structure is especially appealing for people who expect to be in a lower tax bracket down the road.
A Self-Directed Roth IRA flips that. You pay taxes upfront, but qualified distributions in retirement are tax-free, including all the gains. That can be a huge advantage if you believe your investments will grow substantially over time. It’s also a huge advantage if you’re in a relatively low tax bracket now and want to lock it in.
If you’re self-employed or own a small business? A Self-Directed SEP IRA or Solo 401(k) might be a better fit for you. These accounts let you contribute more (sometimes, significantly more) than Traditional or Roth IRAs. That can be a powerful way to fast-track your retirement savings, especially if you want to invest in assets like rental properties, private equity, or land.
Match the Account to Your Lifestyle
Some people prefer simplicity. Others want contribution flexibility. And for many, the decision comes down to what the account can do once it’s set up.
Traditional and Roth IRAs are relatively easy to manage. They work well for most individual investors. They’re great choices for people who want to diversify their portfolios with alternatives but don’t have business income or employees to consider. SEP IRAs are built for business owners with no or few employees, while Solo 401(k)s offer more contribution options, but also come with more recordkeeping.
What ties them all together is the self-directed structure. Once you choose the type of account, you get to decide what assets to hold. That’s where TurnKey IRA comes in. We handle the administration so you can focus on making the most of your investments on your own terms.
Whether you’re buying a rental home, funding a private note, or exploring hard assets like gold, we help ensure your IRA stays compliant while giving you the freedom to build a portfolio that reflects what you know and believe in.
The Best IRA Is the One That Matches Your Goals
Unfortunately, there’s no one-size-fits-all Self-Directed IRA. The best account for you depends on your retirement timeline, your tax strategy, and the types of investments you want to pursue. But once you get clear on those priorities, choosing the right account becomes a lot simpler.
If you’re not sure which direction to go, or if you’re ready to open a Self-Directed IRA and want expert guidance, reach out to us here at TurnKey IRA by dialing 844-8876-IRA (472) and explore a new future of retirement investing. Interested in learning more? Schedule a free consultation. Download our free guide or visit us online at www.turnkeyira.com.
