To choose the right self directed IRA retirement plans for your retirement needs, the first thing to do is to get a complete understanding of what a self-directed Individual Retirement Account really is. Basically, a self-directed IRA account is quite similar to a regular 401k. It offers people the chance to really invest in their future by acquiring enough retirement funds through years of employment, for example. But what sets a self-directed IRA from the rest is its wide range of investment opportunities which have been approved or are permitted by the law.
Types of Self Directed IRA Retirement Plans
There are four (4) types of self-directed IRA plans that one can choose from. One of which is the Traditional IRA, from which the annual contribution (tax-deductible) are all based on the actual contributor’s income. Now, taxes apply only until the IRA funds have been withdrawn from the account. ROTH IRA is another type of IRA retirement plan with which contributions are considered to be not tax deductible. One’s eligibility also relies on the person or the account holder’s rate of income. SEP IRA, also known as a Simplified Employee Plan is a plan that an employer or a company sets up for their workforce. Whether they are part of a sole proprietorship or partnership, the company will be able to establish this form of self-directed IRA retirement plan. Lastly, the Simple IRA, which shares a lot of similar points with the SEP IRA, is created or established for an individual employee. The only difference is that the funding of the account can be based on the actual contributions of both the employer and the employee.
Self Directed IRA Investments
Now, regardless of which one you choose out of the 4 types of self directed IRA retirement plans available, one can acquire self directed IRA investments through the checkbook control feature. There are those who choose to invest on precious metals, tax liens, private equities, stocks and bonds, on the other hand, there are those who choose using self directed IRA for Real Estate.
Benefits of Using Self Directed IRA to Invest in Real Estate
As soon as you have chosen the right one from the different self directed IRA retirement plans, you can invest on real estate properties and enjoy the many benefits of doing so. You will have the chance to not only acquire really worthwhile investments, these are also tangible assets that you can actually touch and see. You are opening up the opportunity to have control over your properties and investments without losing out on tax benefits.
- Self directed sep
- Simple IRA
- True self directed ira
- Self directed retirement account
- Self directed roth IRA