Alternative IRA 101 — Beyond Stocks & Bonds

Overview

Self-directed IRAs let you invest in alternatives like real estate, precious metals, private equity, and even crypto — all within a tax-advantaged retirement account. From Bitcoin IRAs to gold and precious metals IRAs, the options extend far beyond traditional stocks and bonds. Understanding prohibited transactions, custodian requirements, and contribution limits is essential before opening an SDIRA. Review our tax guides to learn how tax-deferred and tax-free growth can supercharge your retirement savings.

Key Takeaways

• A self-directed IRA (SDIRA) is a traditional or Roth IRA held at a specialised custodian that allows alternative assets.
• Prohibited transactions: you can't personally benefit from SDIRA assets (e.g., live in a property your IRA owns).
• Disqualified persons: you, your spouse, parents, children, and certain entities can't transact with your SDIRA.
• UBIT/UDFI: unrelated business income in an IRA can trigger taxes — especially with leveraged real estate.

Practical Tips

• Popular SDIRA custodians: Equity Trust, Alto IRA, iTrustCapital (crypto), Directed IRA.
• Start with a Roth SDIRA if eligible — alternative gains are tax-FREE, which is incredibly powerful.
• Custodian fees for SDIRAs are higher than standard IRAs ($200-500+/year) — factor this into your cost analysis.