Discover how self-directed IRA providers enable diverse investment opportunities beyond traditional assets. Learn about their history, benefits, and leading service providers in this comprehensive guide, perfect for investors seeking control and flexibility.

Guide to Self-Directed IRA Service Providers

The increasing popularity of self-directed IRA providers offers investors the chance to diversify their portfolios with a wider array of assets. Unlike traditional IRAs limited to stocks, bonds, and mutual funds, these accounts allow investments in real estate, startups, peer-to-peer loans, mortgages, and other alternative investments.

This investment style demands active management and careful oversight. Investors must stay informed about tax rules and asset management responsibilities to maximize benefits and minimize risks.

Effective management of these diverse assets can yield significant returns, especially with many providers now offering online account access for seamless transactions. Crowdfunding options further enhance investment choices, providing opportunities in startups, peer-to-peer lending, distressed properties, and even film projects.

Self-directed IRAs originated in 1974 under the Employee Retirement Income Security Act, initially requiring custodians like banks and brokerage firms, which limited investment possibilities. Since 2001, the IRS has allowed self-directed IRAs to include alternative assets, greatly expanding investment options.

Leading providers include Accuplan, Broad Financial, Central Bank, Equity Trust, Guidant Financial, Horizon Trust, IRA Advantage, American IRA, CamaPlan, First Trust, and IRA Resources.