Roth Self Directed IRA

A Roth Self Directed IRA is a tax advantaged retirement savings account.

A Roth Self Directed IRA is a tax-advantaged retirement savings account. Self Directed IRAs may make a wide range of investments. With a Roth Self Directed IRA, account distributions are tax-free.

Tax Benefits

  • Contributions are subject to federal income tax. However, you will not need to pay taxes at the time of distribution.
  • If you anticipate being in a higher tax bracket when you retire, this retirement account may have significant tax benefits.
  • Proceeds from the Roth Self Directed IRA investment go directly to the IRA with no Federal Income Tax or Federal Tax filing.
  • Your beneficiary will inherit a Roth IRA.


  • Individuals can contribute up to the annual limit
  • The 2023 limit is $6,500 for individuals under the age of 50
  • The 2023 limit is $7,500 for individuals over the age of 50
  • Adjusted gross income (AGI) must be below certain limits
  • The IRS allows individuals to convert a Traditional IRA into a Roth IRA
  • Anyone can contribute with a Backdoor Roth
  • The contribution deadline is April 15th


  • Distributions are penalty-free after age 59 ½
  • There is no Required Minimum Distribution.
  • Distributions are not subject to federal income tax

Learn more below on the primary differences between a Traditional & Roth IRA!

Self Directed Investment



May make any investment that is not a prohibited transaction



Money In



Are Income Tax-Deductible

Are Not Income Tax-Deductible

To make a new contribution to an IRA

Must have Earned Income

Must have Earned Income

Transfers from one IRA account to another IRA account

Unlimited Amount

Unlimited Amount

Earning Limits (2022)

Are Unlimited

Are Unlimited using a Backdoor Roth

Money Out


Qualified distributions are

Taxed as Ordinary Income

Income Tax-Free

Must take an annual

Required Minimum Distribution

YES-Must start at age 70½

NO Required Minimum Distribution

Passes to a beneficiary

As a Traditional IRA Account

As a Roth IRA Account

If You Die


Can your beneficiary keep investing the funds in the Inherited IRA



Super Bonus for all IRAs

Will the IRA be subject to probate?                 


IRAs do not go through Probate if there is a named beneficiary


IRAs do not go through Probate if there is a named beneficiary

Learn more about the other types of Self Directed IRA accounts we offer, or contact us today to learn more! 312-795-0988

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