October 20, 2023

Embrace the First State with a Self-Directed IRA in Delaware

Written By: Daniel Gleich

Key Points 

  • A Self-Directed IRA (SDIRA) in Delaware offers residents access to a diverse range of investment opportunities, including real estate, private businesses, and precious metals.
  • Establishing an IRA LLC in Delaware can provide enhanced control and flexibility of your Self-Directed IRA investments.
  • At Madison Trust, opening a Self-Directed IRA in Delaware is as easy as 1-2-3: open, fund, and invest.
delaware real estate with aerial view of the river

Nestled within the Mid-Atlantic region and known fondly as the “First State” of the United States, Delaware offers its residents a unique blend of small-town living and big city proximity. It’s where coastal beauty meets urban amenities for the perfect combination of charm and convenience.

If you're looking for innovative ways to invest for retirement while embracing all that Delaware has to offer, a Self-Directed IRA (SDIRA) can be the key to unlocking a world of possibilities. With a Self-Directed IRA in Delaware, you can:

tiny home on desk in front of person with calculator opening a self-directed ira

Buy Real Estate

Delaware boasts a diverse range of scenery, from small cities to rural landscapes, and stunning beachfront communities along its coast. This diversity, combined with the state's direct routes to several major cities, makes it a coveted location for real estate investments.

Picture owning a piece of Delaware's scenic beauty—a historic townhouse in Wilmington, a sprawling estate in Lewes, or a beachfront cottage in Rehoboth Beach—within a tax-advantaged retirement account. A Self-Directed IRA enables you to invest not only in residential real estate, but also commercial real estate, raw land, and beyond! With your SDIRA, you can potentially benefit from property appreciation while enjoying the tax-free status of a Self-Directed Roth IRA or the tax-deferred approach of a Self-Directed Traditional IRA.

Delaware is also one of the highest ranked states for retirees. You may very well want to stay in Delaware when it’s time to relax and enjoy the gains you’ve earned from your investments.

Invest in Private Businesses

Delaware is renowned for its business-friendly environment, with generous tax laws that attract companies from various industries. In fact, more than 60% of Fortune 500 companies call Delaware their legal home, presumably at least partly to benefit from the state’s favorable corporate tax climate. Delaware has a skilled workforce that extends to commuters from nearby Philadelphia, Baltimore, and even as far as Washington, D.C.

Investing in private businesses through a Self-Directed IRA in Delaware allows you to tap into this thriving business hub. You're not limited to local opportunities, though. Your investment choices span the entire country. This can be attractive as a way to diversify your retirement portfolio and feel the excitement of being a business investor simultaneously.

Gold coins investment with a Self-Directed IRA

Hold Precious Metals

In an ever-changing economic landscape, precious metals like gold, silver, platinum, and palladium have stood the test of time as stable assets. With a Self-Directed IRA, you have the flexibility to invest in physical bullion or certain coins to ensure compliance with IRS regulations. By including precious metals in your Self-Directed IRA, you can typically hedge against market volatility. With Madison Trust, you can purchase precious metals from FideliTrade, a Delaware Depository Company, and have the metals safely stored in Delaware Depository’s vault.

Establish an IRA LLC

Delaware's reputation for business-friendliness extends to the process of establishing an LLC (Limited Liability Company). The state's well-defined LLC laws make it an attractive choice for those looking to enhance control and flexibility of their Self-Directed IRA investments by forming an IRA LLC and opening a Checkbook IRA. This innovative structure allows you to manage everyday investment transactions without going through your Self-Directed IRA custodian.

When you form an LLC for your Self-Directed IRA in Delaware through our sister company, Broad Financial, the LLC setup process is fast and seamless. You will then have the freedom to write checks and send wires from your dedicated checking account tied to your IRA LLC. Let’s say you’re at the beach and need to pay the property manager of your rental investment. No problem. You can send a wire from your IRA LLC’s checking account through your bank’s mobile app. Rather drop a check off in person on your way to the golf course? Just as easy. A Checkbook IRA lets you live your life and handle your investment transactions more freely.

Self-Directed IRA investor looking at his retirement portfolio on his laptop.

Get Started with Opening a Self-Directed IRA in Delaware

Realizing the potential of a Self-Directed IRA in Delaware is an exciting moment. Opening a Self-Directed IRA with Madison Trust is an easy process. Once your account is opened, you will fund it by transferring or rolling over funds from an existing retirement account or making an initial contribution, and then you instruct Madison Trust to invest your retirement funds in the alternative assets of your choice. Schedule a free discovery call today!

Disclaimer: All of the information contained on our website is a general discussion for informational purposes only. Madison Trust Company does not provide legal, tax or investment advice. Nothing of the foregoing, or of any other written, electronic, or oral statement or communication by Madison Trust Company or its representatives, is intended to be, or may be relayed as, legal, tax, investment advice, statements, opinions, or predictions. Prior to making any investment decisions, please consult with the appropriate legal, tax, and investment professionals for advice.

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