Self-Directed IRA Guide 2026
You spent decades building your 401k. A Self-Directed IRA gives you the freedom to invest it how you want—real estate, gold, crypto, or whatever makes sense for your situation. No more being stuck with whatever funds your employer picked.
What is a Self-Directed IRA?
Here's the deal: a regular IRA from Fidelity or Vanguard only lets you invest in stocks, bonds, and mutual funds. That's it. A Self-Directed IRA (SDIRA) removes those handcuffs. After 30+ years of building your nest egg, shouldn't you get to decide where it goes?
With a Self-Directed IRA, you can invest in what you actually understand:
- Real estate (rental properties, land, commercial buildings)
- Precious metals (gold, silver, platinum)
- Cryptocurrency (Bitcoin, Ethereum, and more)
- Private equity and startups
- Tax liens and deeds
- Promissory notes and private lending
- LLCs and private businesses
All gains grow tax-deferred (Traditional) or tax-free (Roth), just like your current retirement accounts. The only difference is you're no longer stuck with whatever options your employer chose. If you spent 30 years learning about real estate or understand why gold holds value—you can actually use that knowledge.
What Can You Actually Invest In?
You worked 30 years in your field. Maybe you understand real estate better than any stock chart. Maybe you've watched gold prices your whole life. With an SDIRA, you can invest in what you know:
Precious Metals
Gold, silver, platinum, and palladium coins and bars
Cryptocurrency
Bitcoin, Ethereum, and 200+ other digital assets
Real Estate
Rental properties, land, commercial real estate
Private Equity
Startups, private companies, LLCs
Note: Collectibles, life insurance, and S-corporations are prohibited IRA investments per IRS rules.
What is Checkbook Control?
Checkbook control (also called a Checkbook IRA or IRA LLC) gives you direct access to your IRA funds without waiting for custodian approval for every transaction.
Here's how it works: Your Self-Directed IRA owns an LLC, and you're the manager of that LLC. You have a checkbook (or debit card) for the LLC's bank account, allowing you to:
- Write checks instantly for investments
- Close deals without custodian delays
- Reduce transaction fees
- Maintain full control while staying IRS-compliant
Checkbook Control vs Traditional SDIRA
Faster Transactions
Close real estate deals in days, not weeks
Lower Fees
No per-transaction custodian fees
Full Control
You manage the LLC and make decisions
More Responsibility
You must ensure IRS compliance
Best Self-Directed IRA Custodians
Compare the top SDIRA providers based on fees, features, and investment options.
Rocket Dollar
Equity Trust
Entrust
Prohibited Transactions
The IRS has strict rules about Self-Directed IRAs. Violating these rules can disqualify your entire IRA and trigger massive tax penalties.
- xNo self-dealing: You can't buy property from yourself or sell to yourself
- xNo personal use: You can't live in or vacation at property owned by your IRA
- xNo disqualified persons: Can't transact with family members (spouse, parents, children, etc.)
- xNo sweat equity: You can't personally perform work on IRA-owned property
Always consult a tax professional before making SDIRA investments.
Frequently Asked Questions
What is the difference between a Self-Directed IRA and a regular IRA?
A regular IRA (from Fidelity, Vanguard, etc.) limits you to stocks, bonds, and mutual funds. A Self-Directed IRA allows you to invest in alternative assets like real estate, cryptocurrency, precious metals, private equity, and more. The tax benefits are the same.
Can I roll over my 401(k) into a Self-Directed IRA?
Yes, you can rollover funds from a 401(k), Traditional IRA, Roth IRA, 403(b), TSP, or other qualified retirement accounts into a Self-Directed IRA. The process is similar to any IRA rollover.
What is the best Self-Directed IRA custodian?
It depends on your needs. Rocket Dollar is best for checkbook control and real estate. Equity Trust is a solid full-service option. For crypto specifically, iTrustCapital or Alto IRA are better choices.
How much does a Self-Directed IRA cost?
Fees vary by custodian. Rocket Dollar charges $15/month flat fee. Traditional custodians like Equity Trust charge per-transaction fees that can add up. Checkbook control SDIRAs typically have lower ongoing costs for active investors.
Can I buy a house with my Self-Directed IRA?
Yes, buying real estate is one of the most popular SDIRA investments. However, you cannot live in or personally use the property. All income and expenses must flow through the IRA, and you cannot perform labor on the property yourself.
What happens if I break SDIRA rules?
Prohibited transactions can cause your entire IRA to be disqualified, meaning the full balance becomes taxable immediately. You may also face a 10% early withdrawal penalty if under 59 1/2. The consequences are severe—always consult a professional.
You Built It. You Should Decide Where It Goes.
After decades of saving, you've earned the right to invest your retirement in what makes sense to you—not just whatever your old employer's plan offered.
Get Started with Rocket Dollar$15/month flat fee - Checkbook control - No hidden fees
Add Gold to Your Self-Directed IRA
Self-directed IRAs give you control over your investments. Many investors choose to include precious metals for diversification and protection.