A self-directed IRA, whether used solely or combination with a non recourse financing, creates new potential for investment opportunities and allows the flexibility to manage your own wealth. With this program, you have the power to determine how to invest and your transaction can be completed by issuing a check or wiring funds from your self-directed IRA account. With an LLC funded by a self-directed IRA, any investment that you choose is able to be completed without needing approval from a 3rd party IRA custodian. Not only do self-directed IRA’s allow for additional investment freedom, they still provide asset protection, estate planning benefits, and income tax deferred profits.

If you are considering opening up your own self-directed IRA, then you must decide whether a traditional IRA or a Roth IRA is a better fit for you.  Both types of IRAs offer some form of tax benefit.  Contributions to a Roth IRA are made with after-tax dollars, while a traditional IRA calls for pre-tax contributions.  Any contributions made to a pre-tax are tax listed as a deductible expense on your personal tax return.  Also, with a traditional IRA, your account balance remains tax free until funds are withdrawn. With a Roth IRA, this keeps your funds tax free during a withdrawal if the account has been opened for more than 5 years and the account holder is over the age of 59 ½. A Roth IRA is favorable choice for investors who may be expecting to move into a higher income tax bracket in retirement. A Traditional IRA can increase the account balance through tax-deferred reinvestment compounding.