Home | Investment Accounts | Solutions for Individuals | Self-Directed Traditional IRA

Self-Directed Traditional IRA

Traditional Self-Directed IRAs

Overview

The Traditional IRA allows you to invest with pre-tax contributions that can compound over time in a tax-deferred environment. Plus, owners may qualify for tax deductions in addition to yearly contributions.

Anyone who has compensation* is eligible to make a contribution to a Traditional IRA.

The owner can begin withdrawing from the account at age 59½ (withdrawals before this are subject to penalty and taxes) and is required to take a distribution each year beginning in January after attaining the age of 72. For more information, see IRA Withdrawal Rules.

Jumpstart Your Wealth Building

Request Your Free Self-Directed IRA Success Kit

Get Access Now

Key Benefit

Grow your retirement account over time tax-deferred, while also possibly qualifying for yearly tax-deductions. While the money is taxed when withdrawn, often owners are in a lower tax bracket at that point in their life.

IRA Eligibility

You can set up and make contributions to a Traditional IRA if you (or your spouse, if you file jointly) have earned income.*

If both you and your spouse have compensation, each of you can set up an IRA. You cannot participate in the same IRA.

IRA Contribution Limits

The IRS sets limits for how much you can contribute to a Traditional IRA each year. See the current year’s contribution limits.

What Makes a Traditional IRA Self-Directed?

When an IRA is referred to as a self-directed account, it simply means you can use the account invest in areas outside of the traditional stocks and bonds. That’s the primary difference between a self-directed and traditional retirement account — where you put those investment dollars.

With a self-directed IRA or 401(k), you can invest in a variety of areas, including:

Real estate
Private debt like corporate debt offerings, notes secured by deeds of trust or mortgages
Private equity-like stock of C-corporations, limited partnerships, LLCs and REITs
Precious metals, including gold, silver, platinum, and palladium
Cryptocurrency like Bitcoin

*Compensation is defined as the wages, salaries, commissions, bonus, alimony and any other amount that you receive for providing personal services. For individuals who are self-employed, sole proprietors and partners in a partnership, “earned income” is another term for compensation. Passive income such as interest, dividends and most rental income are not considered compensation for the purpose of funding an IRA.

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.

Name*

First Name* Last Name*

Email*

Phone*

This field is for validation purposes and should be left unchanged.

By entering your information and clicking Start a Conversation, you consent to receive reoccurring automated marketing text messages and emails about Equity Trust’s products and services. This consent is not required to obtain products and services. If you do not consent to receive text messages and emails from Equity Trust and seek information, contact us at 855-233-4382. Reply STOP to opt out from text messages. Message and data rates may apply. View Terms & Privacy.

Next Step… Get Started with a Traditional or Roth IRA

Additional Links of Interest

Self-Directed IRA Fees Traditional vs Roth IRA Traditional IRA Contribution Limits

Identify your wealth-building goals and discover your personalized strategy by answering a few quick questions.

WHAT ARE YOUR CURRENT GOALS?