Self-Directed Roth IRA:
Tax-Free Alternative Investments
You paid taxes on every paycheck for 30 years. With a Self-Directed Roth IRA, your retirement growth is completely tax-free—and you get to invest in real assets like gold, real estate, and more. Not just whatever funds HR picked.
Tax-Free Growth
All qualified withdrawals are completely tax-free—including decades of gains.
Alternative Assets
Invest in real estate, crypto, gold, startups, and more beyond stocks.
Full Control
You choose your investments—not a fund manager or financial advisor.
What is a Self-Directed Roth IRA?
Your regular 401(k) limits you to whatever investment options your employer's plan administrator picked—usually the same mutual funds that crashed 40% in 2008. A Self-Directed Roth IRA puts you back in control:
- Roth tax treatment — You've already paid taxes on this money. When you withdraw in retirement, you pay nothing—even on decades of growth
- Self-directed freedom — You choose the investments: physical gold, real estate, even crypto. Not whatever Wall Street wants to sell you
For workers who've saved $500K or more and don't trust the market not to crash again, this is how you take back control. Your money, your decisions, zero taxes on the gains.
Why Consider a Self-Directed Roth IRA?
Imagine buying a rental property in your Roth IRA. Over 20 years, it generates $200,000 in rental income and appreciates $300,000. In a regular account, you'd owe taxes on all of it. In a Self-Directed Roth IRA? $0 in taxes when you withdraw.
The same applies to crypto gains. If your Bitcoin investment grows 10x inside a Roth IRA, you keep every penny when you withdraw in retirement.
Self-Directed Roth IRA Rules for 2026
| Contribution Limit (2026) | $7,000 ($8,000 if 50+) |
| Income Limit (Single) | $161,000 (phases out up to $176,000) |
| Income Limit (Married) | $240,000 (phases out up to $250,000) |
| Qualified Withdrawals | After age 59½ and 5-year rule met |
| Required Minimum Distributions | None (Roth IRAs have no RMDs) |
What Can You Invest In?
A Self-Directed Roth IRA allows the same alternative investments as any Self-Directed IRA:
Real Estate
Rental, commercial, land, REITs
Cryptocurrency
Bitcoin, Ethereum, altcoins
Precious Metals
Gold, silver, platinum
Private Equity
Startups, LLCs, private companies
Self-Directed Roth IRA vs Traditional SDIRA
| Feature | Self-Directed Roth | Self-Directed Traditional |
|---|---|---|
| Contributions | After-tax | Pre-tax (deductible) |
| Withdrawals | Tax-free | Taxed as income |
| Required Distributions | None | Starting at 73 |
| Income Limits | Yes (see above) | No |
| Best For | Expecting higher taxes later | Need tax break now |
The Backdoor Roth Strategy
If your income exceeds Roth IRA limits, you can still use a "Backdoor Roth" strategy: contribute to a Traditional IRA (non-deductible) and convert it to a Roth. This works with Self-Directed IRAs too. Consult a tax professional for details.
How to Open a Self-Directed Roth IRA
- Choose a custodian — Rocket Dollar, Equity Trust, or Entrust for alternatives
- Select Roth IRA option — Specify Roth (not Traditional) when opening
- Fund your account — Contribute cash or convert from Traditional IRA
- Make investments — Purchase real estate, crypto, gold, etc.
- Hold and grow tax-free — All gains are sheltered from taxes
Best Self-Directed Roth IRA Providers
Rocket Dollar
Best for real estate and active investors. $15/month flat fee.
Read Review →Frequently Asked Questions
Can I have a Self-Directed Roth IRA?
Yes, you can have a Roth IRA that is self-directed. Most SDIRA custodians offer both Traditional and Roth account options. You get the alternative investment flexibility plus tax-free Roth growth.
Can I buy real estate in a Roth IRA?
Yes, you can buy real estate in a Self-Directed Roth IRA. All rental income and appreciation grows tax-free. However, you cannot personally use the property or perform labor on it.
Can I hold crypto in a Roth IRA?
Yes, through a Self-Directed Roth IRA or specialized crypto IRA like iTrustCapital. Your crypto gains grow completely tax-free in a Roth structure.
What are the income limits for a Self-Directed Roth IRA?
The same as regular Roth IRAs: $161,000 (single) or $240,000 (married) for 2026. Above these limits, you can use the Backdoor Roth strategy to contribute indirectly.
Can I convert my Traditional SDIRA to a Roth?
Yes, you can convert a Traditional Self-Directed IRA to a Roth SDIRA. You'll pay taxes on the converted amount, but future growth will be tax-free.