Formerly known as First Trust Company of Onaga
Home > Why Self-Direction

Why Self-Direction

Flexibility. Control. Opportunity. These are the hallmark features of a self-directed IRA.


Access to a Broad Range of Investments

Although most IRA providers offer only traditional investments such as mutual funds or CDs, the laws governing IRAs allow your tax-deferred IRA assets to be invested in a wide array of investments through a self-directed IRA:

  • Private equity
  • Real estate investment trusts (REITs)
  • Publicly traded stocks
  • Corporate bonds
  • Limited liability companies
  • Private promissory notes
  • Limited partnerships
  • Mutual funds
  • Real Estate
  • Government securities
  • Certain precious metals
  • Mortgage notes
  • Annuities 

Customized to Your Savings Objectives

At Mainstar Trust, the self-directed option is available for any type of IRA: Traditional IRA, Roth IRA, Simplified Employee Pension (SEP), or Inherited IRA. Self-directed IRAs are used by IRA owners to drive a variety of different savings objectives including

  • Diversification from the traditional stock market
  • Ability to invest locally, nationally, and globally
  • Opportunity to capitalize on an investor’s special expertise or invest in special interest projects

Self-directed IRAs do not lose any of the tax and savings benefits commonly associated with IRAs

  • Tax deductions for most traditional IRA contributions
  • Tax-free earnings in a Roth IRA
  • Ability to consolidate retirement savings through rollover from other retirement assets
  • Bankruptcy protection up to $1.2 million (indexed) for IRA assets and unlimited protection for employer plan rollover assets
  • Ability to pass IRA assets to heirs without going through probate


Support Considerations

Alternative investments can add complexity to your IRA, with the potential for additional administrative, tax, or legal requirements. Often IRA owners engage a financial advisor to help them evaluate investment opportunities, risks, and costs. Many self-directed IRA owners find it beneficial to consult with tax or legal advisors to navigate the tax rules and avoid prohibited transactions. It is also important to work with a custodian that has proven expertise in administering self-directed IRAs.


Learn more about Mainstar Trust Self-Directed IRAs