There are so many taxpayers and professionals that tote the self directed IRA as the answer to all your problems. While there are uses for a self directed IRA, there are many pitfalls that most are not aware of. These pitfalls can often outweigh any positives, especially for real estate investments. Make sure you are able to make an informed decision!

About Eric:
Eric Freeman is a Principal at BeachFleischman PLLC, a Top 200 largest CPA firm in the United States. He leads the Real Estate Practice at his firm. He spends most of his career focusing on real estate transactions and partnership taxation. He consults with clients on complex transactions including multi-asset exchanges, mergers, consolidations, buy-outs, cost segregation studies and transaction formation. His client base includes real estate developers, property owners and property managers operating with 2 million to 7 million square feet of real estate or $500 million to $2 billion in assets.

Eric is a real estate investor, owner and operator of both residential and commercial property. He has over a decade of experience and has purchased multiple properties with no money down.

Eric regularly speaks at real estate, tax and investing conferences. Eric has shared the stage with Ken McElroy, Robert Kiyosaki, Thach Ngyugen, Robert Helms, George Gammon Jason Hartman and many others. He is also a contributor to multiple real estate and tax publications. Eric has also taught continuing education for other CPAs though the Arizona Society of CPAs.

Eric is a KenMcElroy.com Advisor and records videos for the Ken McElroy YouTube Channel. Eric is also Ken’s personal CPA.

YouTube.com/@kenmcelroy

The content produced on this channel is not affiliated with BeachFleischman, PLLC. You can separately obtain more information about BeachFleischman, PLLC from www.beachfleischman.com.

All content produced by EricFreemanCPA, LLC. Any and all content provided by EricFreemanCPA, LLC and/or its affiliates is for education purposes only and is not intended to substitute for obtaining accounting, tax, financial or legal advice from your own professional accountant. EricFreemanCPA, LLC and/or its affiliates do not take any responsibility for actions taken after watching, reading, hearing or otherwise consuming the content produced. You should contact your own tax or legal professional for advice specific to your situation. Presentation of information provided by EricFreemanCPA, LLC and/or its affiliates via the internet is not intended to create, and receipt does not constitute, an accounting-client relationship. Subscribers, users and online viewers/readers are advised not to act upon this information without seeking the service of a professional accountant, attorney or otherwise qualified professional. EricFreemanCPA, LLC does not engage in any accounting-client relationships on or off the internet. While EricFreemanCPA, LLC uses reasonable efforts to furnish accurate and up-to-date information, it does not warrant that any information contained herein is accurate, complete, reliable, current or error-free. EricFreemanCPA, LLC assumes no liability or responsibility for any errors or omissions in the content produced….(read more)

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Your Self Directed IRA Custodian Doesn’t Want You To Know This

Having a self-directed IRA can offer you greater control over your retirement investments, allowing you to invest in a wide range of assets beyond the traditional stocks, bonds, and mutual funds. However, your self-directed IRA custodian may not want you to know about one key aspect of self-directed IRAs that could benefit you greatly – the option to choose your own investments without restriction.

Many self-directed IRA custodians may try to limit the types of investments you can make within your account, often out of fear of potential risks or regulations. However, it is important to remember that the IRS rules governing self-directed IRAs do not explicitly list specific prohibited investments, except for a few restrictions such as life insurance and collectibles. This means that as long as the investment is not explicitly prohibited, you have the freedom to choose where to invest your retirement funds.

One key strategy that your self-directed IRA custodian may not want you to know about is the ability to invest in alternative assets such as real estate, private equity, precious metals, and cryptocurrencies. By diversifying your retirement portfolio with these alternative investments, you may be able to potentially achieve higher returns and add a layer of protection against market volatility.

Another aspect that your custodian may not want you to know about is the potential tax advantages of self-directed IRAs. By investing in alternative assets within your self-directed IRA, you can potentially defer taxes on gains or income until you begin to make withdrawals in retirement. This could lead to significant tax savings over time, allowing your investments to grow tax-free within your IRA.

It is important to note that not all self-directed IRA custodians are created equal, and some may try to limit your investment options in order to simplify their custodial responsibilities or reduce potential risks. Therefore, it is crucial to do your own research and select a custodian that offers the flexibility and support you need to pursue your desired investment strategies within your self-directed IRA.

In conclusion, your self-directed IRA custodian may not want you to know that you have the power to choose your own investments without restriction, as long as they comply with IRS rules. By taking advantage of the benefits of self-directed IRAs, such as investing in alternative assets and potential tax advantages, you can potentially enhance your retirement savings and achieve your financial goals more effectively. It is important to stay informed and proactive in managing your self-directed IRA to ensure that you are maximizing its full potential.