Getting Started
Getting Started with Your Self Directed IRA
One of the most frequently asked questions we get is “How do I get started?”
Most people know how to establish a traditional IRA, or Roth IRA, for example. You can go to almost any bank, or a financial institution and ask to set up an IRA account. The bank acts as the custodian of your account, and gives you a list of publicly traded securities and bonds from which to choose for your investments.
But what happens if you want to invest in something that’s non-traditional, like a piece of real estate or a promissory note, for example? That’s where most people need help getting started with a SDRA. (We refer to traditional IRAs, Roth IRAs, SEP accounts, SIMPLE accounts and certain 401(k) plans for self-employed individuals that invest in non-traditional assets as “self-directed retirement accounts” or “SDRAs” for short.)
Here are the 7 steps you need to follow to get started:
- Decide what non-traditional investments you want to make.
- Choose your custodian.
- Establish an account with your chosen custodian.
- Transferring Funds to Your New SDRA
- Make or negotiate arrangements for your SDRA to make the investment, in other words, set up the deal.
- Direct your custodian to make the investment.
- Complying with the Rules