FAQ: Self-Directed IRAs
- Preferred Legacy Trust
- May 7, 2025
- 2 min read
Benefits of a Self-Directed IRA
Investment Flexibility
A self-directed IRA gives you the freedom to invest in a broad range of assets that align with your retirement goals, including alternative investments you may already be familiar with. This flexibility allows you to tailor your retirement portfolio to meet your unique financial objectives.
Access to Additional Capital
With a self-directed IRA, you can access a valuable source of capital—your retirement assets—that might not otherwise be available, opening the door to more investment opportunities.
Tax-Advantaged Growth
Self-directed IRAs, whether Traditional or Roth, maintain their tax benefits:
Traditional IRA: Investments grow tax-deferred until distribution.
Roth IRA: Investments grow tax-free until distribution.
Any income, profits, or appreciation from your investments can accumulate within the IRA, helping you grow your retirement savings.
Collaborative Financial Planning
We work closely with your trusted financial and legal advisors to align your self-directed IRA with your broader estate and financial planning strategies.
How the Self-Directed IRA Process Works
Open a Self-Directed IRA: Begin by setting up your self-directed IRA with The Preferred Legacy National Trust Bank.
Transfer Assets: Move funds from your existing IRA into your self-directed IRA to make cash available for investment in alternative assets.
Purchase Alternative Investments: Use your self-directed IRA to invest in assets such as real estate, property, or an LLC. We facilitate the process:
For real estate, we coordinate with the closing agent to finalize the purchase.
For LLCs, we issue a wire transfer to the bank managing the LLC’s closing.
The IRA must hold title documents or finalized LLC agreements.
4. IRS Compliance: Alternative investments within IRAs are subject to specific IRS rules. Our team ensures that your self-directed IRA remains in compliance with all regulations.
5. IRA Cash Management: It’s essential to keep sufficient cash within your IRA to cover expenses, including:
Property taxes and maintenance
Repairs and improvements
Unrelated business taxable income (UBTI), if applicable
Other ongoing fees
Contact The Preferred Legacy National Trust Bank today to learn how a self-directed IRA can help you diversify your investments and grow your retirement savings. Our team is here to guide you through the process while ensuring compliance with all IRS regulations.
Comments