Alternative Investments in Your IRA
Explore alternative investments in an IRA including private lending, cryptocurrency, and real asset strategies using a Self Directed IRA.
Diversify with Alternative IRA Investments
A Self Directed IRA allows you to invest in alternative assets beyond stocks and bonds. These alternative investments can include private lending, cryptocurrency, royalties, and real assets, all while maintaining tax advantages when structured correctly under IRS rules.
Private Lending
Use your IRA to lend money secured by real estate or other collateral. Learn more about private lending in an IRA.
Tax Liens & Deeds
Earn interest or acquire property by investing in tax liens through your IRA.
Cryptocurrency
Invest in digital assets like Bitcoin through compliant IRA structures. See cryptocurrency IRA investing.
Royalties & IP
Generate passive income through intellectual property owned by your IRA.
Oil & Gas
Invest in energy production and mineral rights through IRA structures.
Farmland & Timber
Own income producing land and real assets inside your IRA.
Private Lending: Becoming the Bank
Private lending is one of the most common alternative investments in a Self Directed IRA, allowing your account to generate income through interest payments.
How It Works
Your IRA lends money to a borrower, who repays the loan with interest. The loan is often secured by collateral such as real estate.
Key Benefits
- Predictable income stream
- Collateral protection
- Higher yield potential
- Tax advantaged growth inside the IRA
Risks
- Borrower default risk
- Illiquidity
- Requires due diligence
Compliance Reminder
Your IRA cannot lend to disqualified persons. Review prohibited transaction rules before structuring any deal.
Tax Liens and High Yield Opportunities
Tax lien investing allows your IRA to earn interest based on state laws when property owners fail to pay taxes.
Research Required
Tax lien investing requires strong due diligence and understanding of local regulations.
Important SDIRA Rules
All alternative investments must comply with IRS rules. You cannot personally benefit from IRA assets, and all income must flow back into the IRA.
Some investments may generate UBIT or UDFI. Learn more about UDFI and tax implications before investing.