self-directed IRA

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Self-directed IRA

An IRA that the account holder can after appointing a custodian manager to carry out investment instructions.

Self-Directed IRA

An IRA in which the account holder has a great deal of control over the investments made on the account. That is, either the account holder or a designated representative has the ability to make investments with the contributions made to the account. Generally speaking, a self-directed IRA exists through a brokerage, which makes investments on behalf of the account holder. The brokerage may charge an annual fee for managing a self-directed IRA in addition to the commissions it charges on the individual trades.

self-directed IRA

An individual retirement account that permits its owner to have wide latitude as to types of assets and control over the investments within the account. A self-directed IRA generally refers to IRAs established at brokerage firms in which customers may buy and sell securities. Brokerage firms frequently charge an annual fee of up to $50 in addition to commissions on any trades in an account.
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Using a self-directed IRA to hold real estate assets has advantages such as tax-deferred or tax-free profits, compound interest, asset protection and estate planning.
Therefore, if a self-directed IRA holds a business, the income generated from that business will be taxable.
Another risk of a self-directed IRA is that the investor might not have the financial know-how to understand the tax implications.
CFP, is an Attorney, a Certified Financial Planner and Managing Member of Entrust of Tampa Bay LLC, a self-directed IRA administrator.
A self-directed IRA works much like any other type of IRA, allowing employed individuals to set aside money for retirement through tax-deferred savings (whether or not the person is covered under an employer's retirement plan).
8220;Combining Advanta IRA's excellence in self-directed IRA investments and 25 years of experience in the industry, and our automatic investing system I believe we will continue to be at the forefront of the investment industry and the brand name investor's trust.
If you have an old 401 (k) where you used to work, you can directly roll those funds over to your newly-created self-directed IRA.
As with any type of investing, there are traps to watch out for when using your self-directed IRA.
This guide for general readers shows how to turn a self-directed IRA into a wealth building tool.
Once the tax adviser has presented the cashflow solutions and the client has made his or her choice(s), the practitioner will need to find n self-directed IRA custodian (SDIRA).
Shannon hired a financial advisor to help him develop a plan, which included rolling over his money into a self-directed IRA and coming up with the appropriate asset allocation mix comprised of real estate, stocks, bonds, and mutual funds.