Beyond many of the popular alternative investments available for self-directed IRAs (real estate, private lending, notes, and private placements), there are even more possibilities available for self-directed investors.
As long as IRS guidelines are followed, you are in direct control of your financial future and can determine what investment makes the most sense for you.
There are a few assets that are not permitted to be held within an Equity Trust self-directed account, in addition to those restricted by the IRS.
For example, ETC will not custody:
Life insurance contracts
Production or distribution of federally prohibited controlled substances
Personal and commercial vehicles, excluding farm equipment
As outlined within your Custodial Agreement, Equity Trust will review purchase requests on a case-by-case basis and may determine that your requested investment cannot be held within the account.
There are important rules to remember when investing in your account that are the same across all asset types.
You are unable to purchase an investment from a disqualified individual
Assets owned by your account cannot be commingled with other assets
For example: If you purchase a food truck it may not be placed on property that you or other disqualified individuals own
Prohibited investments include collectibles (such as artwork, stamps, rugs, antiques and gems), certain coins, and life insurance
Assets owned by your account cannot be sold to a disqualified person
Disqualified individuals are not able to live in, rent, or work on assets owned by your account.
Any income earned from any investment must return to your account
All expenses related to maintenance, upkeep, or improvements to the asset must be paid from your account
For the complete list of rules please visit IRS.gov
Let’s talk about your financial future.
Schedule a one-on-one session with an expert alternative investment counselor. We’re here to answer any questions, help guide you through the process, and provide more detailed information and education specific to your journey.
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Equity Trust Company is a directed custodian and does not provide tax, legal or investment advice. Any information communicated by Equity Trust Company is for educational purposes only, and should not be construed as tax, legal or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional. Equity Institutional services institutional clients of Equity Trust Company. Brokerage Services Available Through ETC Brokerage Services, Member SIPC, and FINRA. *Founded in 1974 | Self-Directed IRA Custodian since 1983. The predecessor business to Equity Trust Company was established in 1974 and the IRS approved as a custodian in 1983. **Assets under custody as of 8/31/2021.
You are leaving trustetc.com to enter the ETC Brokerage Services (Member FINRA/SIPC) website (etcbrokerage.com), the registered broker-dealer affiliate of Equity Trust Company. ETC Brokerage Services provides access to brokerage and investment products which ARE NOT FDIC insured. ETC Brokerage does not provide investment advice or recommendations as to any investment. All investments are selected and made solely by self-directed account owners.