If you’re looking for a retirement account that gives you a high degree of control over your investments, a self-directed Roth IRA is a great option. With a self-directed Roth IRA, you can choose from a wide variety of investment options, including real estate, private company stock, and tax lien certificates. You can also make tax-free withdrawals of your contributions and earnings after you reach age 59 1/2.
If you’re interested in a self-directed Roth IRA, contact your financial advisor to learn more about the options available to you.
Books to Read on Self-Directed Roth IRA
If you’re interested in learning more about self-directed Roth IRAs, here are a few books that can help:
“The Self-Directed Roth IRA Handbook: A Guide to Investing Your Retirement Funds in Real Estate, Private Companies, and Tax Liens” by Lane K. Anderson.
“The Self-Employed Person’s Guide to Retirement Planning: Everything You Need to Know to Plan and Fund a Secure Retirement” by Gregory S. Dow.
“The Roth IRA Handbook: How to Use a Roth IRA to Secure Your Financial Future” by Fred J. Hoehn, III.
“Roth IRA Secrets: How to Use a Roth IRA to Secure Your Financial Future” by William D. Danko, Ph.D., and Richard J. Van Ness, JD.
“Self-Directed IRA Handbook: An Authoritative Guide to Self-Directed Individual Retirement Accounts” by Nancy Sutherland.
“The Self-Directed IRA Advantage: Tax-deferred and Tax-free Investing for Your Retirement” by William G. Ferguson, Esq.
“Real Estate Investing with a Roth IRA: How to Use Your Retirement Funds to Build Wealth in Real Estate” by David Greene.
“The Complete Guide to Self-Directed IRAs: Everything You Need to Know About Investing Your Retirement Money in Assets Such as real Estate, Private Companies, and Tax Liens” by Joseph D. Pignataro.
The Pros of a Self-Directed Roth IRA Include The Following:
1. You have a high degree of control over your investments.
2. You can choose from a variety of investment options.
3. You can make tax-free withdrawals of your contributions and earnings after you reach age 59 1/2.
The Cons of a Self-Directed Roth IRA Include The Following:
1. You may need to pay fees to a financial advisor or custodian.
2. You may be subject to IRS penalties if you make withdrawals before age 59 1/2.
3. You may need to pay taxes on your earnings if you withdraw them before age 59 1/2.
If you’re considering a self-directed Roth IRA, be sure to weigh the pros and cons
carefully before making a decision. You should also consult with a financial advisor to see if a self-directed Roth IRA is right for you.
Types of Self-Directed Roth IRA
There are three types of self-directed Roth IRAs: the Roth IRA, the Roth conversion IRA, and the Roth recharacterization IRA.
The Roth IRA is a traditional IRA that has been converted to a Roth IRA. The Roth conversion IRA is a traditional IRA that has been converted to a Roth IRA to withdraw the funds within five years. The Roth recharacterization IRA is a Roth IRA that has been converted to a traditional IRA, and then back to a Roth IRA.
If you convert a traditional IRA to a Roth IRA, you may be subject to taxes on the conversion. However, if you convert a traditional IRA to a Roth IRA and then back to a traditional IRA within five years, you will not be subject to taxes on the conversion.