October 4, 2023

Sculpt Your Own Mount Rushmore of Retirement Investments with a Self-Directed IRA in South Dakota

Written By: Daniel Gleich

Key Points 

  • A Self-Directed IRA (SDIRA) in South Dakota enables you to potentially capitalize on South Dakota’s competitive real estate market.
  • Precious metals and private businesses held in your Self-Directed IRA present additional opportunities to diversify.
  • You can gain even more control of your retirement investing when you establish an IRA LLC to upgrade your Self-Directed IRA to a Checkbook IRA.
Aerial View Of Sioux Falls South Dakota at sunset

With a backdrop of sweeping plains and that famous mountainous sculpture, a Self-Directed IRA in South Dakota embodies the Mount Rushmore State’s identity of overdelivering on the underexplored. For South Dakotans, a Self-Directed IRA (SDIRA) isn't just a financial tool; it's an opportunity to forge new streams for wealth and explore new possibilities for growth.

Nestled in the heart of the American Midwest, South Dakota is a haven of natural beauty, rich culture, and welcoming communities. From the breathtaking Badlands to the enchanting Black Hills, and from friendly Rapid City to buzzing Sioux Falls, South Dakota blends modern living with a deep-rooted connection to history. Pair all of that with the freedom to invest in alternative assets using a Self-Directed IRA, and you can truly expand your horizons in this wonderful state. With a Self-Directed IRA in South Dakota, you have the ability to:

Buy Real Estate

Gold coins, a clipboard, a small model house, and a calculator arranged on a table, showing an investment in real estate with a Self-Directed IRA.

South Dakota's allure isn't just about its majestic landscapes; it's also rooted in a uniquely limited and therefore highly competitive real estate market. The state's ideal geographic location, coupled with a high quality of life and low cost of living, attracts a steady influx of tourists and new residents. Buying real estate through a Self-Directed IRA in South Dakota becomes an intriguing avenue for retirement investing.

By acquiring a rental or vacation property through a Self-Directed IRA, you're not only setting the stage for potential appreciation but also reaping the benefits of the tax-deferred or tax-free status of a Self-Directed IRA. Imagine investing in a cozy home in the picturesque town of Spearfish or a vacation property near the tranquil waters of Lewis and Clark Lake. A Self-Directed IRA empowers you to align your investments with your own attraction to South Dakota's unmatched charm.

Buy Land

Residential real estate isn’t the only type of property you can hold in a Self-Directed IRA. You can also use your Self-Directed IRA in South Dakota to buy land (and even commercial property such as farmland). South Dakota is a surprisingly large state in terms of landmass and there are millions of acres of land for sale across the state. While South Dakota consistently sees population growth in its cities and towns, much of its land is untouched due to the state’s sheer size. Whether you intend to hold land or build on it, a Self-Directed IRA lets you get creative with your investment portfolio to grow your retirement savings.

Investor woman speaking with a financial advisor about her investment strategy and shaking his hand.

Invest in Private Businesses

South Dakota's business landscape embraces innovation and prosperity. The state's business-friendly policies and advantageous tax environment have attracted private companies in various high-growth industries. Through a Self-Directed IRA, you have an investment vehicle to be a visionary investor in South Dakota and beyond. Be it nurturing local startups in Sioux Falls or backing emerging tech ventures nationwide, your Self-Directed IRA becomes a conduit for propelling growth, not just in South Dakota, but across the country. The goal is to invest in private businesses that you believe can potentially generate returns in your tax-advantaged retirement account.

Hold Precious Metals

South Dakota's steadfast spirit finds resonance in the timelessness of precious metals. In fact, gold and silver can be mined in the state’s hills even today. Panning for gold can certainly give you a rush, but you don’t need to mine to own gold in a Self-Directed IRA. With Madison Trust’s Gold IRA, you can simply purchase gold and other precious metals from FideliTrade, a Delaware Depository Company, and have the metals safely stored at Delaware Depository. Gold has been valued throughout history and is often seen as a hedge against inflation; its value typically increases when the value of the dollar decreases. Investing in precious metals with a Self-Directed Gold IRA in South Dakota may be the golden opportunity for your retirement funds to grow.

Establish an IRA LLC

LLC acronym on wooden cubes on a light background with near potted plant, notebook, pen

To further enhance control and flexibility of your Self-Directed IRA investments, consider establishing an IRA LLC, also known as a Checkbook IRA. With an IRA LLC, you gain checkbook control, allowing you to manage everyday investment transactions without going through your custodian. South Dakota's welcoming business climate extends to the process of forming an LLC, where regulations are streamlined and simplified.

When you form an LLC for your Self-Directed IRA in South Dakota 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 a dedicated checking account tied to your IRA LLC. This allows you to act faster on investment decisions so you can quickly seal the deal when you’re ready to place an investment.

Get Started with Opening a Self-Directed IRA in South Dakota

At Madison Trust, unlocking the potential of a Self-Directed IRA in South Dakota is as easy as 1-2-3: open, fund, and invest. And yes, we’re based right here in South Dakota, where we call beautiful Sioux Falls home to our headquarters. Are you ready to explore the possibilities? Learn more and get started 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.

Got Questions?

Speak with a Self-Directed IRA Specialist.
Blog Pages Right Side Contact Form (#11)

You've got questions? We've got answers.

Fill out our form below, and a Self-Directed IRA Specialist will answer all of your questions. 
All Pages Bottom Contact Form
Corporate Headquarters:
Madison Trust Company
401 East 8th Street • Suite 200
Sioux Falls, SD 57103
Mailing Address:
Madison Administration Company
One Paragon Drive • Suite 275
Montvale, NJ 07645
Monday - Thursday: 9:00AM - 6:00PM EST
Friday: 10:00AM - 4:00PM EST
Saturday/Sunday: Closed
(800) 721-4900
[email protected]
F: 845-947-1212