The 5 Best Self-Directed IRA Providers For 2022

If you’re investing for retirement and want to take advantage of some tax advantages, investing with an IRA is a smart move. But regular IRAs generally limit your investment options to traditional investments like stocks, ETFs, and bonds.

For investors who want to dabble in alternative assets while enjoying the tax advantages of an IRA, you need a self-directed IRA (SDIRA). But there are many self-directed IRA providers, each with different assets, fees and rules available.

That’s why we cover some of the best Self-Directed IRA options you can use to invest in multiple asset classes while maximizing your tax efficiency.

What is a Self-Directed IRA?

A self-directed IRA is an IRA in which the custodian allows you to invest in a wider range of alternative assets than a regular IRA.. This means that you can invest in assets such as artwork, cryptocurrencies, fine wine, real estate and many other alternatives at your discretion. Plus, you still get the same tax benefits as a traditional IRA, along with the same contribution limits.

The selling point of SDIRAs is that you are in full control of your operations and have more options. But that also means you don’t get any investment advice from the custodian. In addition, self-directed IRAs allow you to invest in more volatile assets, such as private equity and other speculative investments. This makes them a better choice for experienced investors who want to explore alternative investments, not new investors who are still building their nest eggs.

The best self-directed IRAs

If you’re ready to diversify into alternative investments within your IRA, the following SDIRA providers are some of the most flexible and cost-effective options you can use.

1. High

Alto IRA is one of the most popular alternative IRA options out there, largely due to its low fees and ease of use. It lets you open a Traditional, Roth, or SEP IRA and invest through more than 75 investment partners for categories like:

These investment partners have different investment requirements, but many start between $100 and $1,000. However, some assets are only available to accredited investors.

But HighIts main selling point is its low rates. Their starter plan is only $10 per month, or $100 per year if you pay annually. The other main fee is a $10 fee every time you make a trade with a partner. But for Alto CryptoIRA, the crypto-specific plan, you don’t even pay account fees and only pay a 1% trading fee.

Overall, this simple fee structure helps simplify your life. And Alto also makes opening an account fairly simple, whereas some self-directed IRA providers require you to open an LLC for you to invest. This makes Alto IRA a bit more limited than other companies on our list. However, it shines in ease of use and affordability.

2. Rocket Dollar

If you want even more control over the assets you invest in or invest through a single (401k), Rocket Dollar is one of the best self-directed IRAs out there. It actually creates an LLC for you to invest in and gives you control of the checkbook, meaning making an investment is as quick and easy as writing a check or sending a wire transfer. And it even has a “bring your own deal” option where you can find and invest in your own deals with the help of the Rocket Dollar team.

Like Alto, Rocket Dollar also partners with alternative investment platforms such as cryptocurrency exchanges, renewable energy companies, lending marketplaces and crowdfunding sites.

For pricing, Rocket Dollar has two plans: Silver and Gold. Silver costs $15 per month and has a $350 setup fee, and this plan will work for most investors looking for alternatives. The Gold plan offers LLC setup support, some tax preparation help, and priority support, but costs $30 per month and has a $600 setup fee.

3. Capital trust

Equity Trust is another leading self-directed IRA provider that allows you to invest in a variety of assets including precious metals, crypto, peer-to-peer lending, and real estate. But you can still invest in more traditional securities like mutual funds, stocks and ETFs for a truly diverse portfolio.

This SDIRA provider has also been in business for over 45 years and has $34 billion in assets under management, so it has a proven track record and thousands of clients. In contrast, many newer self-directed IRA companies are very beginner-friendly, but don’t have the same track record or size.

And Equity Trust also lets you open solo 401(k)s, SEP IRAs, and even other tax-advantaged accounts like HSAs. It also uses a fee schedule that varies based on your total account balance. Accounts up to $14,999 pay $225 in annual fees and there is a $50 online application fee. You don’t pay transaction fees like you do with some SDIRA providers.

4. uDirect IRA

uDircect is another self-directed IRA provider that also provides checkbook control like Rocket Dollar. And it is best known for its real estate investment offerings, including individual offerings, land, REITs and real estate notes. It also allows you to invest in other assets as you have control of your checkbook and complete discretion over your account.

If you want low and simple fees, uDirect is also a good option. It charges $275 per year and a one-time $50 setup fee. There is also a minimum account balance of $325. Crypto trades have a 1% fee as Alto up to $10,000, but the fees drop the larger the trades.

You may also pay various storage fees for gold and silver depending on the total value. However, uDirect has a fairly low fee overall, especially for larger account balances.

5. Pacific Premier Trust

With $15 billion in assets under management, Pacific Premier Trust is another big player in the self-directed IRA space. It is actually a division of Pacific Premier Bank, which has over 30 years of experience. And like Rocket Dollar and uDirect, you get control of the checkbook for the most control possible.

The firm focuses somewhat on real estate and private equity, but according to its website, its team has experience with nearly 42,000 alternative assets. And you can still invest in stocks, bonds, and ETFs if you’re short on alternatives.

The main downside to Pacific Premier Trust is that it charges 0.30% annual fees for accounts up to $1 million. But it emphasizes customer service and allows you to work closely with Pacific Premier Trust IRA experts if you need help placing trades and making sure investments are IRA compliant.

Pros and Cons of Self-Directed IRAs