Diversifying your retirement portfolio is a smart investment strategy that can reduce risk, enhance stability, and improve returns. Alternative assets have the potential to outperform traditional assets like stocks, bonds, and mutual funds, and with a low correlation to traditional investments, can act as a powerful buffer during market downturns.

Investment gains and income generated within the self-directed IRA can be tax-free (Roth IRA) or tax-deferred (Traditional IRA). Because a self-directed IRA claims 100% of the income generated by the investments in the account, your retirement funds can grow without restriction.

A self-directed IRA permits tax-free withdrawals of contributions, interest, and earnings after the age of 59 ½.

Consult your tax professional about the possibility of reducing your taxable income based on your filing status and income.

• 2024 Traditional IRA Maximum Annual Contribution Limit – under 50 years $7,000, over 50 years: $8,000.
• 2024 Roth IRA Maximum Annual Contribution Limit – under 50 years $7,000, over 50 years $8,000.
• 2023 SEP IRA Maximum Annual Contribution Limit – lesser of $69,000 or 25% of compensation.
• IRA allows all taxpayers under 73 years to contribute to an IRA.

If you file a joint return, both you and your spouse can make IRA contributions, even if only one of you has taxable compensation. The amount of your combined contributions can’t be more than the taxable compensation reported on the joint return, regardless of which spouse earned the compensation. If neither spouse participated in a retirement plan at work, all contributions may be deductible.

You can contribute to a traditional or Roth IRA whether or not you participate in another retirement plan through your employer or business. However, you may not be able to deduct all of your traditional IRA contributions if you or your spouse participates in another retirement plan at work. (Roth IRA contributions may be limited based on income level.)

Consult with a qualified CPA or tax specialist to verify your maximum contribution limits. You can also find additional details here, in IRS Publications 560 and 590.

Under US Bankruptcy law, self-directed IRA assets are exempt from bankruptcy in amounts up to $1,000,000.

Certain self-directed IRAs allow the passing of assets to beneficiaries after death, with little or no tax liability.

Properly designating your beneficiary can be an important part of your lifetime plan. Without this designation, your heirs may be subject more income and estate taxes than necessary.

Beneficiary Options:

• The most common beneficiary designations are spouses, children, grandchildren, or other relatives.
• A trust, charity, or combination of individuals can also be named.
• Multiple individuals can be named as beneficiaries however additional rules apply as to how the required minimum distribution is determined.
• Name a Living Trust. When you name a living trust as either a primary or contingent beneficiary, work with a professional to ensure the trust agreement is established properly to make certain you have the most advantageous tax results.
• Name a contingent beneficiary should your primary beneficiary predecease you. Without a designated beneficiary your IRA could go into probate and produce unfavorable tax results for your loved ones.