Who should use a Self-Directed IRA?
A Self-Directed IRA fits anyone who wants more say over what their retirement account holds — from straightforward assets like crypto, stocks, and precious metals, to more involved alternatives like real estate or private placements. This article walks through where the structure shines, and what to know before holding assets that ask more of you.
Steps / Explanation
Whether a Self-Directed IRA (SDIRA) is the right account structure for any individual is ultimately a decision for the account holder, ideally with input from a tax advisor or attorney familiar with retirement-account rules. This article is not advice. It's a description of the situations the SDIRA structure fits well, and what to expect depending on what you choose to hold inside it. We recommend consulting a tax advisor or attorney for guidance specific to your situation.
Who the structure fits well
The SDIRA model is built for people who:
Want more choice in their retirement account than a conventional brokerage menu offers — whether that's easy exposure to crypto, stocks, and precious metals, or access to alternative assets like real estate, private equity, private placements, promissory notes, and LLC interests. If it's outside the standard public-markets menu, an SDIRA is what makes holding it inside a tax-advantaged account possible.
Are comfortable directing their own investment decisions. The "self-directed" part is the whole point — you identify opportunities and make the call. See "How Retired.com works — the platform and custodian model explained" for how the Retired.com platform and Digital Trust, the custodian, support that.
Have specific expertise or interest in a particular asset class — crypto, real estate, a startup, or an industry they know well.
Have funds to move into an SDIRA through one of the standard channels — annual contributions, transfers from existing IRAs, or rollovers from former employer plans. The funding-side mechanics work the same way they do at any IRA custodian.
Common account-holder profiles
Retired.com clients fit a range of patterns, including:
The rollover holder. Someone who left a former employer with a 401(k) balance and wants the rolled-over funds invested in something other than the public-market menu their next custodian offers.
The crypto investor. Someone who wants long-term crypto exposure inside a tax-advantaged retirement account, often using Retired.com's Bundles or direct cryptocurrency holdings — one of the more straightforward SDIRA paths.
The diversifier. Someone with a conventional retirement portfolio who wants part of their retirement funds in a different asset class entirely — typically a small to moderate allocation, not the whole account.
The real estate investor. Someone using retirement funds to buy and hold rental property, raw land, or commercial real estate. SDIRAs are the only IRA structure that supports direct real estate ownership.
The private-deal investor. Angel investors, private-fund LPs, syndicate investors, and others who participate in private placements outside the public markets.
What to know depending on what you hold
The day-to-day workload of an SDIRA scales with what's inside it — it's not a single fixed level of effort. It helps to think of two broad categories:
Straightforward, exchange-traded assets — crypto, publicly traded stocks, and precious metals held through Retired.com — are close to a conventional IRA experience. Trading and holding these assets involves the same kind of ongoing attention you'd give any brokerage account.
Complex alternative assets — real estate, private placements, promissory notes, and similar illiquid holdings — ask more of you. These involve:
Compliance attention. The Internal Revenue Code (IRC) §4975 prohibited-transaction and disqualified-person rules apply to every transaction. See "Prohibited transactions — what they are and why they matter".
Documentation. Investments must be titled in the name of the IRA, supporting paperwork kept, and an annual Fair Market Valuation (FMV) submitted for each non-publicly-traded asset.
Time. Real estate closings, private-placement subscriptions, and promissory note documentation take time to manage.
None of this is a reason to avoid alternative assets — it's simply what comes with holding them, and it's worth knowing upfront rather than discovering partway through. Many account holders work with a tax advisor or attorney to manage this side of things. For the full split of who handles what, see "Your responsibilities vs. Retired.com's and Digital Trust's responsibilities".
What permitted assets does not mean
A permitted asset is not the same as an evaluated asset. The fact that the IRS allows real estate, private equity, or cryptocurrency inside an SDIRA says nothing about whether a particular real estate deal, private fund, or token is a sound investment. Investment evaluation is the account holder's job, ideally with input from professionals who can speak to the specific opportunity. See "Investment restrictions in an IRA" for what the IRS does and does not permit at the asset level.
Common questions
Do I need a minimum amount to open an SDIRA at Retired.com?
There is no IRS minimum to open an IRA. Retired.com's specific account-opening requirements — including any platform minimum balance — are best confirmed with your Account Representative, who can walk through the current setup process.
Can I have both a conventional IRA and an SDIRA?
Yes. Many account holders keep public-market investments at a conventional brokerage and use an SDIRA for alternative-asset positions, or hold both inside a single SDIRA. The IRS sees them as IRAs governed by the same per-account-type rules; contribution limits aggregate across all of an individual's IRAs of a given category.
Is a Self-Directed IRA riskier than a regular IRA?
The tax-advantaged structure is the same. The risk profile depends on what's held inside the account — the same as any IRA. An SDIRA holding only crypto, stocks, or precious metals carries a similar risk profile to holding those assets anywhere else; concentrated real estate or single-issuer private placements reflect the risk of those specific investments.
Can I move my SDIRA back to a conventional IRA later if I change my mind?
Yes. A trustee-to-trustee transfer to a conventional IRA custodian is the standard mechanic. The receiving custodian needs to be able to custody whatever assets you're holding — public-market securities and crypto transfer easily; alternative assets typically need to be liquidated or held to maturity first.
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Retired.com is a platform that connects clients with its affiliated entities, including Digital Trust, BitcoinIRA, WAO Advisory, Rocket Dollar Capital, and Rocket Dollar Advisor. Digital Trust is an independent, directed, non-discretionary trust company that is registered and regulated in the state of Nevada. While Retired.com facilitates connections to these services, it is not itself a custodian, digital wallet, exchange, broker-dealer, registered investment advisor, or a company involved in trading publicly traded assets. All information provided is for educational purposes only and should not be taken as investment, legal, or tax advice. We encourage you to consult with a qualified advisor or professional to determine the most suitable options for your individual needs.