How to Choose the Right Self-Directed IRA for Yourself?
Unlike other retirement accounts, self-directed IRAs give you the autonomy to invest directly in any assets you think can become suitable investments.
However, there isn’t one type of a self-directed gold IRA account that you can choose and rest assured that all your retirement plans have been taken care of. There are many types of self-directed IRAs, such as a Self-Directed Solo 401(k), traditional IRA, and Roth IRA.
The type of IRA that you should own depends on what you want to invest in. While the Internal Revenue Code doesn’t expand on what you can invest in through your self-directed IRA, it details all assets that you can’t finance. Here are the primary type of self-directed IRAs and who should buy these:
Self-Directed Traditional IRA and Roth IRA
The oldest form of IRA, the self-directed Traditional and Roth IRA, is pretty straightforward. You can get a Traditional IRA until you’re 70 and a half years of age. Perhaps the most attractive thing about this type of a self-directed IRA is that it uses pre-tax money for its contributions.
This means that your investment gets to enjoy tax-free growth on a tax-deferred basis. Hence, if you’d like not to pay taxes when taking distributions in retirement, Traditional and Roth IRAs are ideal options.
Self-Directed Solo 401(k)
If you’re looking for a retirement plan that allows for higher contributions every year, the self-directed 401(k) plan is a perfect choice. Many employers choose this form of IRA for their employees and secure their retirement.
However, if you don’t work through an employer and are self-employed, the solo 401(k) is also a great option. With similar benefits, both types of these IRAs offer high contribution limits on pre-tax basis. This can allow for greater flexibility when putting money aside for investments.
A SEP IRA (or Simplified Employee Pension plan) is a popular retirement plan among the self-employed. Its low-cost, easy, and flexible and allow entrepreneurs to establish a reliable strategy for themselves.
Like the 401(k) account, the SEP-IRA offers high contribution limits for pre-tax contributions. This means you can diversify your investment portfolio more freely with a SEP-IRA account and expand beyond traditional investment forms, such as stocks and bonds.
With a SEP IRA, you can invest in real estate and precious metals and secure your retirement plans. Orion Metal Exchange is one of the top IRA companies globally and offers the best gold coins for investment. If you want to work with a trusted IRA company, reach out to us at 1-800-599-0088.