Self Directed IRA

Self Directed IRA

Self Directed IRAs are a popular option for those who want to take control of their retirement funds. The self-directed platform allows for investment in a diverse set of assets such as real estate, private placements, hedge funds, small businesses, precious metals, etc. By diversifying beyond Wall Street, investors can solidify their retirement holdings in sensible and profitable investments.

The Self Directed IRA comes in two versions: Custodian and Checkbook Control. Each has its own unique set of features. Which one you should choose depends on the kind of investment asset that you would like to purchase. Here’s how each one works:

Custodian IRA – The Custodian IRA is a more traditional version of the Self Directed IRA and places the Custodian in charge of transactional activity. All purchases, sales, and maintenance of assets are conducted by the Custodian. This platform works best for those assets which have little to no maintenance requirements. Examples of suitable investments are one time private placements or fund participation.

Checkbook IRA – The Checkbook IRA places all management activity in the hands of the investor. It does this by establishing a dedicated LLC and appointing the investor as the non-compensated manager of the LLC. This makes conducting transactions much easier and less expensive. Due to the economy of this platform, it is ideal for investments which require multiple transactions and upkeep (e.g. real estate.)

In both platforms, Madison Trust functions as the Custodian of the IRA, and offers you streamlined client-friendly service. Speak to one of our specialists today and find out which IRA model works for you.

To learn more, call us at (800) 721-4900