What is a Self-Directed IRA?

For Traditional and Roth Self-Directed IRAs, the 2019 maximum IRA contribution limit is $6,000 up to age 50, and $7,000 for those 50 and older. Catch-up contributions for those 50 and older max out at $1,000 annually. 

Fees at Entrust fall under one of four categories: establishment, recordkeeping, transaction, and termination. For your convenience, we offer two recordkeeping fee options, one based on the number of assets and one based on asset value. For a full list of fees associated with a self-directed IRA, please visit our fees page.

Most investors are surprised to find out that investing in alternative investments with your retirement funds has actually been around since 1975. Most brokerage firms and banks offer investments, like stocks and bonds. For this reason, it’s not exactly in their best interest to talk about self-directed retirement accounts.

Yes, Real Estate IRAs are one of our most popular investment strategies. Clients have a vast amount of options with this investment strategy, including rental properties, undeveloped land, private equity, mortgage notes and much more. In addition, investors benefit from tax-free or tax-deferred earnings, depending on the type of IRA selected.

Our process is quick and straightforward. Follow these steps:

1. Open a new account: you can open an account online, download the account application here or speak with an Entrust representative at 800-392-9653, option 2.
2. Fund your account. Entrust offers multiple options for funding your IRA. 
3. Choose an investment. If you have an investment in mind and have any questions, contact Entrust to get started.

A few self-directed IRA rules from the IRS to keep in mind with these types of retirement accounts include being aware of contribution limits, avoiding prohibited transactions, accurately reporting the fair market value of your assets, understanding distribution rules, and paying attention to any unrelated business income tax you may be responsible for.

Transactions not permitted under a SDIRA include life insurance contracts, collectibles, and S corporations. In addition, any investment involving a disqualified person (spouse, parents, children and more) are considered prohibited transactions.

Yes, consolidating accounts like a 401(k) into a self-directed IRA is a fairly simple process called a rollover. Methods for funding your account available at The Entrust Group include IRA Transfers, IRA Contributions, and IRA Rollovers.

With any investment comes risk, and self-directed IRAs are no exception, but investments also provide an opportunity for earnings. This is especially true for SDIRAs, where the assets you can invest in are virtually limitless. For inexperienced investors, this can sometimes be perceived as a disadvantage, as more options and freedom means greater responsibility. We encourage all investors to check out five questions to ask before you invest from the U.S. Securities and Exchange Commission.

A few key things you want to look for in a potential company include investment options, disclosure, expertise, fees, data protection, insurance, and servicing times.

To begin accessing your funds without a penalty, you must have reached 59 ½ years old. Depending on the type of IRA, taking early distributions will result in a 10% early distribution penalty tax. At age 70 ½, you must start taking required minimum distributions, depending on the type of account you hold.

No, this is considered a prohibited transaction as it is a conflict of interest by involving a disqualified person (you).