What investments can an IRS-approved Self-Directed IRA custodian hold?
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An IRS approved self directed ira custodian can generally hold a wide range of alternative investments, giving account holders more choices than a typical IRA. Depending on the custodian and applicable IRS rules, eligible investments may include real estate, private equity, LLCs, private companies, promissory notes, tax liens, precious metals, and certain cryptocurrency investments.
Traditional investments such as stocks, bonds, and mutual funds may also be available, although many investors use Self-Directed IRAs specifically to access alternative assets. Each investment must comply with IRS requirements, and certain assets and transactions are prohibited.
For example, a Self-Directed IRA generally cannot invest in collectibles such as artwork, most antiques, certain coins, or life insurance contracts. Investors should also avoid prohibited transactions involving disqualified persons.
As part of choosing an IRS approved self directed ira custodian, review the types of investments it accepts, its fees, documentation requirements, and transaction procedures before opening an account.