What is a self-directed IRA?

A self-directed IRA is a retirement account that lets the account holder select, invest in, and hold assets such as real estate, private equity, private lending, and precious metals. Every investment decision is made by the account holder or by a third party they appoint, such as an investment advisor or power of attorney.

What does a self-directed IRA custodian actually do?

It acts as a non-discretionary administrator of the retirement assets, holding and administering the account and acting on the account holder's instruction to invest. Unlike a registered advisor or broker-dealer it offers no investments of its own, no advice, and no due diligence on sponsors or third parties.

What can a self-directed IRA hold?

Residential and commercial real estate, raw land, REITs, real estate notes and deeds of trust, private LLCs, partnerships and C corporations, tax lien certificates, oil and gas interests, private placements, judgments and structured settlements, and factoring investments.

Can the account holder use a property the IRA owns?

No. The prohibited transaction rules exist to prevent self-dealing: an IRA cannot buy a property that the account holder or a disqualified person, such as a spouse, parent, or child, will personally use.

SDIRA custodians

uDirect IRA Services

uDirect IRA Services is a third-party administrator for self-directed retirement accounts. It holds and administers IRAs and Solo 401(k) plans that invest outside the stock market — real estate, land, private notes, private placements and similar assets — and states plainly that it does not promote investments, give investment, legal, or tax advice, or run due diligence on sponsors. The account holder directs every transaction.

Account types include traditional and Roth IRAs, SEP IRAs for self-employed people and small business owners, Solo 401(k) plans, real estate IRAs, and IRA LLCs. The allowable investment list covers residential property including apartments, single family homes and duplexes, commercial real estate, undeveloped or raw land, REITs, real estate notes and deeds of trust, private limited partnerships, LLCs and C corporations, tax lien certificates, oil and gas, private stock offerings and private placements, judgments and structured settlements, and factoring investments.

Education is the firm's stated cornerstone. It runs webinars, publishes a free weekly newsletter, videos, live events and a book, and maintains an information library covering UBIT and UDFI, prohibited transactions, and the disqualified-person rules that catch investors who try to use IRA-owned property themselves. Its written guidance repeatedly directs investors to their own tax and legal advisers before acting.

A full IRA fee schedule and disclosure is published, covering setup, annual, transaction, termination, Roth conversion, and mail-forwarding charges, with a number of transactions included free over the life of an account. The fees page lists a phone number that differs from the one on file, so confirm the current contact and the fee schedule before opening an account.

Best for

Real estate investors and private lenders who want to hold rentals, notes, tax liens, or syndication interests inside an IRA or Solo 401(k) and are comfortable directing their own deals. The firm gives no investment, legal, or tax advice.

What they do

Self-directed traditional and Roth IRAs
SEP IRAs for self-employed owners
Solo 401(k) plans and plan documents
Real estate IRAs
IRA LLC structures
Administration of private notes and private lending
Private placement and private company investments
Tax lien and tax deed investments
Precious metals and cryptocurrency holdings
Investor education webinars and newsletter

Details

Attribute	Value
How they charge	Publishes a full IRA fee schedule and disclosure covering setup, annual, transaction, termination, and mail-forwarding fees, with a number of free transactions per account.

What stands out

Acts as a third-party administrator: it does not promote investments or provide investment, legal, or tax advice.
Allowable assets include residential and commercial real estate, raw land, notes and deeds of trust, tax lien certificates, oil and gas, and private placements.
Publishes a full IRA fee schedule and disclosure covering setup, annual, transaction, and termination charges.
Runs investor webinars, a free weekly newsletter, and an information library covering UBIT and UDFI.

Common questions

What is a self-directed IRA?: A self-directed IRA is a retirement account that lets the account holder select, invest in, and hold assets such as real estate, private equity, private lending, and precious metals. Every investment decision is made by the account holder or by a third party they appoint, such as an investment advisor or power of attorney.
What does a self-directed IRA custodian actually do?: It acts as a non-discretionary administrator of the retirement assets, holding and administering the account and acting on the account holder's instruction to invest. Unlike a registered advisor or broker-dealer it offers no investments of its own, no advice, and no due diligence on sponsors or third parties.
What can a self-directed IRA hold?: Residential and commercial real estate, raw land, REITs, real estate notes and deeds of trust, private LLCs, partnerships and C corporations, tax lien certificates, oil and gas interests, private placements, judgments and structured settlements, and factoring investments.
Can the account holder use a property the IRA owns?: No. The prohibited transaction rules exist to prevent self-dealing: an IRA cannot buy a property that the account holder or a disqualified person, such as a spouse, parent, or child, will personally use.