what is the best approach to setting up a self directed IRA

[Craig Lilley]

I am wanting to set up a self directed IRA, not sure the best or safest way to go about it. using companies found on the web seems sketchy? any suggestions?

[Anthony Dooley]

Step 1: Don't do it. Step 2: Find another way to fund your real estate idea. This is my opinion based on personal experience with SDIRA. There are some salesmen on this forum who will disagree with me, but I'm fine with that.

[Jennifer Gligoric]

I am a big fan of checkbook control retirement accounts & not just because we use them.  I feel for investors, to take back control of your money is just a very smart move.   Is there a particular reason you are more attracted to a SDIRA rather than a Solo 401k?   I'm not familiar with your setup (and you might already know this) - but, a Solo 401k is only available for self-employed individuals who have no other employees other than their spouse. If you are not self-employed or starting a new business you need to consider the SDIRA.

You can contribute up for 52k a year in a Solo 401k, as well as, much greater flexibility into what you are able to invest in - real estate, precious metals, those are viable investment options which are not offered by traditional plans - hence why this is so valuable for REI's. 

A SDIRA, if you are not self-employed or starting a new business, should be structured for REI's as a self-directed IRA owned business trust. You will need to have a 3rd party custodian and SDIRA custodians can't give financial or investment advice, but having the right structure is important to understand how to avoid UBTI. Also, with a SDIRA there are three different types of transactions that could fall under the prohibited transaction rules: Direct, Conflict of Interest, and Self-Dealing. You need to be familiar with this as well and work with a company that can help you.

We always recommend REI's have a CPA or CFO service to work with, in the end, the right partner there can not just save you money but help you make more money.

[Dmitriy Fomichenko]

@Craig Lilley

The topic of self-directed IRA is a regular discussion here on the forum. I suggest you start by doing some search, the results will likely keep you busy reading for hours :-)

There are several providers who are active on the forum, as you read you can make a judgement of their level of knowledge and experience, select two or three and then jump on the call to discuss your specific situation.