What is a self-directed IRA?

A self-directed IRA is a retirement account that gives you control over how your retirement funds are invested. Unlike traditional IRAs offered through banks or brokerage firms—where investment options are typically limited to stocks, bonds, and mutual funds—a self-directed IRA allows you to invest in alternative assets such as real estate, private equity, promissory notes, precious metals, and more.

You choose the investments, while a qualified custodian administers the account and ensures IRS reporting requirements are met.

Like other IRAs, self-directed IRAs maintain the same tax advantages—either tax-deferred (Traditional) or tax-free growth (Roth)—but provide expanded investment flexibility.