Investing in Nontraditional Assets With a Self Directed Roth IRA

What can you invest in with a selfdirected Roth IRA

Self-directed Roth IRAs provide you with the option of investing in nontraditional assets that provide greater diversification and higher returns than conventional financial investments. However, you must abide by strict IRS rules; failing to do so could incur extra taxes, financial penalties or the loss of tax-deferred status.

Always independently verify information – including prices and asset values – contained on your SDIRA account statements, to prevent unsolicited investment offers and confirm prices from reliable sources.

Real estate

When investing in real estate with a self-directed Roth IRA, there are a range of opportunities. These can range from single-family homes and mobile home parks, commercial property or apartments – even syndications which involves purchasing multiple properties at once – but it is important to be mindful of any tax rules which apply specifically to such investments, particularly disqualified persons and prohibited transactions which must be observed carefully.

Alternative investments like real estate and precious metals may be difficult to value accurately and require independent verification. Therefore, it is critical that any information provided in your IRA account statements (for instance a valuation by a third-party professional or price reported by promoter) is verified independently.

When investing in alternative assets, a custodian who specializes in self-directed accounts can be invaluable. They will manage all paperwork involved while adhering to IRS rules on prohibited transactions as well as help determine the best strategy for you and your situation.


Many investors seek alternative assets in their retirement accounts to increase returns or diversify away from more conventional assets, but these types of assets come with much higher risks than stocks and bonds. Their illiquid nature means it could take longer for you to sell when money is needed quickly, while they have much lower regulatory oversight – it is best to consult a tax professional prior to investing in such alternatives.

As your self-directed Roth IRA allows for the purchase of various assets, it requires working with a custodian who supports these transactions. A suitable custodian can make this process much simpler by helping to locate reliable dealers for each asset type; additionally, look for one without account management or trading fees as this may end up costing more than what the asset itself is actually worth; additionally be aware of disqualified persons and prohibited transactions that might affect you when investing with self-directed Roth IRAs.

Precious metals

Saving for retirement usually involves using traditional investments like stocks, bonds, mutual funds, ETFs and CDs; however a self-directed IRA enables savers to explore alternative assets such as real estate or precious metals while taking into account any associated risks.

Precious metals are valued commodities used in jewelry and catalytic converters. Not correlated with stock or bond prices, these commodities offer diversification benefits and tend to appreciate during times of economic instability.

There are various strategies available for investing in precious metals with a self-directed Roth IRA, including direct ownership or investments in gold or silver mining companies as well as futures contracts or debt instruments like tax liens and loans. It is crucial that any such investment adheres to complex IRS regulations in order to avoid extra taxes, financial penalties or even the loss of its tax-advantaged status.


Self-directed IRAs give you access to alternative assets, including real estate and private equity investments. However, be mindful of the risks involved with investing in such assets – they may require more time, research, and due diligence on your part than traditional financial investments.

Investment products marketed as low risk yet high yield can often appear attractive; it is vital that you conduct adequate research prior to investing. Past performance should not be seen as indicative of future price appreciation and it’s wise to be vigilant for scams and fraud; some fraudulent IRA custodians falsely advertise investments as having been reviewed and approved in order to lure in investors.

Self-directed Roth IRAs allow for almost any type of investment imaginable, from real estate properties, tax liens and LLC companies to collectibles and life insurance policies – these investments do not count as retirement assets, however, and could incur an early withdrawal penalty or taxes when you withdraw them early.

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