What It Means to “Self-Direct”
When you hear the term self-directed IRA, it can sound intimidating—but it’s really simple. A self-directed IRA is just like any other IRA under the IRS rules. The difference is what you can invest in. Instead of being limited to Wall Street products—stocks, bonds, mutual funds—you can choose alternative assets like real estate, private equity, promissory notes, precious metals, even cryptocurrency.
The “self-directed” part means you’re in the driver’s seat. You make the investment decisions, not a broker or a financial advisor.
The Process Step by Step
- Open a Self-Directed IRA Account
You’ll work with a custodian or administrator—like us at uDirect IRA Services—who specializes in holding alternative assets. Not every bank or brokerage will let you self-direct. - Fund Your Account
You can fund it in three ways:- Annual contributions (subject to IRS limits).
- Transfers from another IRA.
- Rollovers from a previous employer’s 401(k) or other qualified plan.
- Select an Investment
This is where your control comes in. You identify the investment opportunity. For example, let’s say you find a rental property you want to buy with retirement funds. - Direct Your Custodian
You don’t write the check yourself—your IRA does. You instruct the custodian to send the funds directly to the investment. That way, the asset is titled in the name of your IRA, not your personal name.
The Rules You Must Follow
The IRS sets some guardrails:
- No self-dealing. You can’t buy a beach house with IRA funds and then vacation there.
- No dealing with disqualified persons. That includes you, your spouse, your parents, grandparents, children, grandchildren, and entities they control.
- Keep it arms-length. All expenses and income flow into and out of the IRA, not your personal bank account.
These rules keep your IRA’s tax-advantaged status intact.
Why Investors Use It
People self-direct because they want control and diversification. They want to put their retirement money into what they know best—real estate, startups, private loans, etc.—instead of being limited to mutual funds.
👉 That’s the high-level view. It’s empowering, but it does require education and discipline. My role—and the role of my company—is to give you the tools, guardrails, and administration so you can build wealth the way you choose, while staying compliant with the IRS.
Contact Us
Whether you want to invest in real estate, crypto, or private companies, we can help you get started with a self-directed IRA.
Call us today at (866) 402-2781
Email us at info@uDirectIRA.com
Visit www.uDirectIRA.com
Let’s make your retirement investing work for you—not just Wall Street.