Regular IRAs are self-managed within custodian-approved options like stocks and bonds. Limited choices compared to the expansive options in SDIRAs.
SDIRAs grant investors full control, allowing a broader array of investments. However, this freedom comes with increased responsibility.
Discover assets not allowed in SDIRAs, such as life insurance, high-risk derivatives, and personal-use real estate. Ensure compliance to avoid penalties.
Understand the severe consequences of engaging in prohibited transactions. Examples include borrowing from the IRA or selling property to it.
Explore the dangers of self-dealing, where personal benefit is derived from IRA assets. Even seemingly clever transactions can lead to IRS scrutiny.
Emphasize the importance of a conservative approach to avoid jeopardizing the IRA. Seek advice from professionals to navigate complex rules safely.
Learn about acceptable bullion for SDIRAs, meeting strict standards. Explore a list of approved gold, silver, platinum, and palladium coins and bars.
Highlight potential tax penalties for prohibited actions in SDIRAs. Stress the significance of adhering to IRA rules to maximize tax advantages.