Self-Directed IRA FAQ’s

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What is a Self Directed IRA?

Technically, A Self Directed IRA is no different than any other IRA (or 401k). Actually, a self directed IRA is remarkably different because it empowers you to decide and direct your retirement money into any investment permitted by the IRS that you choose. This includes options that may offer you more predictability, certainty and security like real estate, trust deeds, tax lien certificates and virtually anything else you can imagine.

What are the benefits of a Self Directed IRA?

SDIRA’s allow you to generate profits and income in an environment that shields your profits from income tax, capital gains tax and Medicare tax. SDIRA’s also allow you lower your tax bill this year by deducting contributions from your income. SDIRA’s are judgment proof in all 50 states and are protected from lawsuits and bankruptcies. You can also bypass probate and leave your tax protected IRA assets to your children and grandchildren.  

Most importantly, by investing tax-free in alternative investments that you can know and understand, through the power of tax protected compounding, you will rewrite your family’s financial legacy.

Why haven’t I heard of a Self Directed IRA before?

While the concept of investing in real estate and other assets in retirement plans has been around since 1974, the concept hasn’t received large attention. Most custodians who offer IRAs (banks and brokerage firms) focus on mutual funds and CDs because they live on the fees and commissions ‘hidden’ in these investments.

As a result, there is a misconception that you are limited to traditional investments in your IRA, however, if you consult IRS Publication 590 you will discover there are few limitations on what you can invest your SDIRA in.

Most IRA custodians only allow approved stocks, bonds, mutual funds and CDs. A truly self directed IRA custodian, such as Horizon Trust, empowers you to make those investments in addition to real estate, notes, private placements, tax lien certificates and virtually anything you can imagine.

Are Self Directed IRAs allowed under IRA rules?

Yes. There are several government publications you can research for yourself what the government allows. IRC 4975 is the tax code governing prohibited transaction rules for IRA’s. IRS Publication 590 discusses the rules as well as outlining the qualifications and the tax benefits offered by SDIRA’s.

What is a self directed IRA custodian and why do you need one?

A self directed IRA custodian is passive custodian. A passive custodian is a regulated financial institution that provides IRA services and allows you, the client to make the decisions and direct your own retirement account. The custodian will safe keep assets, process paperwork and perform other necessary services to maintain the tax protected status of your IRA.

A passive custodian doesn’t sell investments or offer investment advice. The reason you need a self directed IRA custodian is because traditional financial institutions will not allow you to make an investment if they cannot charge a fee or commission on it. A provider of a truly self directed IRAs doesn’t make any commissions on your investments so you can get ‘bias free’ feedback without worrying about getting sold the “hot tip of the day.”

Why are more clients choosing to self direct through Horizon Trust?

Safety – Service – Savings

“Remarkably Different.” Horizon Trust is a remarkably different boutique financial services firm in just about every way. From our fee schedule to our processes to our people is the reason why people serious about self directing are increasingly turning to Horizon Trust to hold their most prized asset, their retirement account. 

How is my Horizon Trust Self Directed IRA protected?

Horizon Trust is a licensed and regulated financial institution with capital requirements placed on it. Horizon Trust is regulated by the Financial Institutions Division (FID) in the State of New Mexico as well as the Internal Revenue Service. Annual examinations are performed by government regulators to ensure compliance with various regulations and proper handling of client funds.

Cash in your account is FDIC insured up to $250,000. Additional insurance is carried above the $250,000 provided by the FDIC. Perhaps the best protection that is offered you is the fact that you have the opportunity to secure your Retirement account with direct ownership of assets like real estate, trust deeds, precious metals, and government issued tax lien certificates.

What will Horizon Trust do for me?

Results. Ultimately you are choosing to self direct your retirement account for one reason, you want to achieve a specific result.  We understand what you want, the challenges you face and the importance of having a responsive, nimble Self Directed Trust company in your corner that you can depend on for the long run.

Welcome Home. We develop a lifelong relationship with you, taking you by the hand every step of the way.  Because of the close relationship we develop with our client, that relationship expands to family, friends and neighbors. We cultivate our relationship with you by continuously striving to earn your business in every transaction.

Three Pillars. How do we deliver service that defies expectations? Our service platform is built on three pillars. Our people are the cornerstone.  Knowledgeable profesionals empowered to support clients and take ownership in each step of the process.  The second pillar is providing these self directed professionals with state of the art systems and processes that we create and continuously enhance. Training, the third plillar, to provide the professionals that work for you with the knowledge, skills and expertise to deliver a consistent experience everytime.

Access. You will have easy online access to view your account 24 hours a day 7 days a week as soon as you establish your account.

What does it cost to have a self directed IRA with Horizon Trust?

Savings you can see. Most financial institutions “hide” their fees inside of the investments you have with them. For example, for a new client that has a $100,000 IRA somewhere else they could pay $4,000 the first year plus $1,500 to $2,500 every year after that. If you are like most people, you don’t know the true cost of your IRA because they don’t make it easy to find out. With a self directed IRA at Horizon Trust, our fees are only a third of what you will pay at a traditional financial institution. More importantly our fees are clear and easy to understand. These are savings you can see, literally.

“Pick your own fee” schedule. The problem with so many of the fee schedules is that they are a “one size fits all.” That simply doesn’t work for most people. So we opted for a more customized approach by allowing you to pick your own fees based on how you plan to use your account. This enables you to receive the service you want without paying fees that aren’t necessary.

Anniversary Date Billing. Most other custodians charge you an annual fee. What that means to you is that if you open your account in August, you pay the annual fee. Then in January, you get billed again for your annual fee. The only way to get a full years service for a full years fee at other custodians is to open your account on January 1st, the problem is, they are closed that day. At Horizon Trust we give you a full years service for a full years fee.  With anniversary date billing, everyday is the right day to open your account at Horizon Trust, even if it happens to be in August. 

At Horizon Trust, we understand that we are not just providing a service to our clients, we play an integral role in your financial success and we treat that responsibility with the upmost respect.

To download the Self Directed, Self Made Success Manual and to schedule a one to one call with a Self Directed Specialist go to:

All information on this site deemed accurate but not guaranteed.