Self Directed Traditional IRA

There are many types of IRAs, but smart and strategic investors know that a Self Directed IRA is the way of the future.

A Traditional Self Directed IRA is a tax-deferred retirement savings account that is the most common type of IRA in use today.

Self Directed IRAs may make a wide range of investments. With a Traditional Self Directed IRA, you receive an income tax deduction at the time of your IRA contribution. 

 Tax Benefits

  • Contributions are tax-deferred, meaning that they are not subject to federal income tax until the time of distribution.
  • If you anticipate being in a lower tax bracket when you retire, this type of retirement account may have significant tax benefits.
  • Proceeds from the Traditional Self Directed IRA investment go directly to the IRA with no Federal Income Tax or Federal Tax filing.


  • 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
  • No income limitations
  • The contribution deadline is April 15th


  • Distributions are penalty-free after age 59 ½. 
  • Distributions are subject to federal income tax.
  • Starting in 2020, the Required Minimum Distribution (RMD) will begin at age 72

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 

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 72

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

Start Your Account Now