Are you looking to seize control of your retirement funds and explore alternative investment avenues beyond traditional stocks? In this episode, Adam Bergman, a nine-time author, former tax and ERISA attorney, and founder of IRA Financial, shares how self-directed IRAs can empower you to invest in assets like real estate, crypto, gold, private businesses, and more. Learn the essential tax rules and strategies to cultivate your retirement growth.

In this episode, we chat about…

• Introduction to Self-Directed IRAs: Explained what a self-directed IRA is and how it differs from traditional IRAs managed by custodians like Fidelity or Vanguard.

• Three Things You Can’t Do with an IRA: Clear breakdown of IRS restrictions: no life insurance, no collectibles, and no self-dealing (IRC Section 4975(c)).

• What Triggers UBIT (Unrelated Business Income Tax): Covered the three scenarios that may trigger UBIT and outlined strategies to avoid or minimize it.

• Solo 401(k) vs. Self-Directed IRA: Compared the advantages of solo 401(k)s for the self-employed, including UBIT exemptions and higher contribution limits.

• Using an IRA LLC or "Checkbook IRA": Describe the structure, benefits of control, limited liability, and privacy offered by IRA LLCs.

• Real Estate and Crypto with a Self-Directed IRA: Detailed how self-directed IRAs can be used for real estate and crypto investments, including the role of non-recourse loans.

Key Takeaways:

• Self-directed IRAs allow you to invest in a wide range of alternative assets, with only a few IRS restrictions.

• A qualified custodian is required to handle IRA funds and facilitate compliant investments.

• UBIT may apply to leveraged real estate or active business investments, but it can often be reduced or avoided with the right strategy.

• IRA LLCs with checkbook control offer more flexibility, privacy, and direct access to manage investments.

• Solo 401(k)s are ideal for self-employed individuals, offering higher contribution limits and exemptions from UBIT on leveraged real estate.

• Learning from credible sources and consulting professionals is essential to avoid costly mistakes in self-directed retirement planning

   

Resources from Adam

     LinkedIn | IRA Financial

 Resources from Mike and Nichole

     Gateway Private Equity Group |  Nic's guide