Investing in Private Entities with an IRA: How it Works

Many investors think they’re limited to stocks, bonds, and mutual funds when it comes to saving for retirement. However, you have the freedom to invest in companies that are private entities, LLCs, placements, other startups, and more, with a self-directed IRA.

Given the volatility of the stock market, investors seeking diversification from the public markets may find a self-directed account to be beneficial. Investments grow in a tax-deferred or tax-free environment and you have the ability to choose exactly what you invest in, putting you in control of your future wealth.

Here’s how it works.

How to Invest in Private Entities with a Self-Directed IRA

To get started, open and fund your Equity Trust account. You can do this online through myEQUITY, or by contacting us to have an Account Executive walk you through the process.

Next, you’ll identify your investment opportunity in a private entity such as an LLC, LP, or C-Corp. It’s important that you perform due diligence on your potential investments before making any decisions.

These are the steps to completing an investment using your account:

Step 1: Request Funds and Direct Your Investment

• Complete and submit the Private Equity Direction of Investment Form, which can be obtained through the online account management system myEQUITY
• Send supporting documentation for LLC, LP, or C-Corp (a list of supporting documentation can be found in myEQUITY)
• Sign documentation and ensure proper titling before sending. The correct titling is: Equity Trust Company Custodian FBO [Account name IRA, Roth IRA, etc.]