What Is a Self Directed Retirement Account?

If you want to set up a reliable IRA for your pension, then you may be considering the self-directed retirement account. These accounts are considered to allow more freedom than the standard IRA, and they also offer the user more control over their own money. In order to work a self-directed retirement account properly, you need to understand what it is, and what its limitations are.

Self Regulating your IRA

With a self-directing IRA, you control all of the movement of your assets, such as the purchase or selling of stocks or bonds. You will also not have to make a standard set of contributions, as they are not set by the bank. However, you will still need to discuss maximizing your plan with the controller of the assets. With this kind of IRA, you are responsible for making the account grow.

Using a Custodian

It is a legal requirement that there be a custodian for the assets gained in an IRA, even for people running the self-directed account. You can let the custodian manage the plan for you, in which case it will not be self-directed, or you can have the custodian, usually a bank or similar financial service, hand the power over to you.

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