In this episode of Wealth Unfiltered, Mat Sorensen, attorney and CEO of Directed IRA and Directed Trust Company, joins Samantha to explain how self-directed retirement accounts let investors put retirement capital in private real estate and other alternative investments. Mat has focused on self-directed IRAs since 2006 and is the author of The Self-Directed IRA Handbook. In 2018 he co-founded Directed IRA, which now manages roughly $4 billion in assets and opens 500 to 1,000 new accounts every month.
Mat clears up the biggest misconception: the account provider decides what an IRA can hold, not the IRS. He walks through how to move existing IRA and 401(k) funds into a self-directed account, when an IRA LLC with checkbook control makes sense, and why most investors putting money into a private fund don’t need one. He also covers the short list of prohibited assets and the prohibited transaction rules around family members.
Mat also explains UBIT, the tax trap that catches unprepared investors. He describes how a $600 million Roth IRA used a blocker corporation, and makes the case for Roth conversions: “I’d rather pay tax on the seed than on the harvest.” He finishes with how advisors can support client requests to self-direct and where retirement capital is heading as private markets grow.
Find Mat Here
- Directed IRA: directedira.com
Special Offer for Wealth Unfiltered Listeners
- Book a free call with Mat’s team: directedira.com
