Self-directed IRA plans are simple: take your money, invest it in almost anything you choose, but direct it so that it’s not taxed until retirement. You can see gold IRA rollover for more information.

This IRA offers you greater control over financial planning. You can choose to invest in assets you already know. You have the option to invest in more than just stocks and bonds or mutual funds.

Self-directed IRAs allow you to make non-traditional investments such as real estate, gold or promissory note, tax liens, and private businesses. Government-sponsored retirement plans offer asset protection and numerous tax advantages.

Employee Retirement Income Securities Law allows you to do just that, provided you keep a clear separation between your self-directed IRA funds and your personal funds. You cannot combine the assets or borrow money from your IRA. In addition, the IRS statutes require that you appoint a custodian for your IRA transactions.

There is no official way to track the number of people who have their IRAs self-directed. However, the Securities and Exchange Commission estimates that about 2% (or more) of all IRAs was self-directed in 2013. That’s over $100 billion. This growth is in part due to investor disappointment at Wall Street’s instability.

Self-Directing an IRA can have a tax advantage

The tax aspect of a self-directed IRA rollingover is crucial. You can transfer your retirement funds tax-free to your self-directed IRA if they are in a 401 k or other deferred tax retirement account. While this allows for a tax-free rollover of your retirement funds, it also allows you to transfer to a separate account as a Self-Directed IRA.