Annual Deposits
In 2026, you can contribute up to $7,500 per year to this type of IRA account as an individual under age 50.
What is a Roth IRA or Traditional IRA?
All five tax-free accounts allow your money to grow this way: without being reduced by annual income taxes on gains.
What is tax-free growth?
Self-directed accounts can invest in this type of property where you purchase multiple units and the tenants' rent pays for the property.
What is multifamily real estate?
You cannot use a tax-free account to buy property if this person or group owns or will benefit from the property.
Who are disqualified persons (family members)?
To properly invest in real estate or alternative assets with self-directed accounts, you need a professional trustee called this.
What is a custodian?
In 2026, a self-employed person can contribute up to $72,000 per year to this retirement account with employee and employer combined contributions.
What is a Solo 401(k)?
You can move money between investments within your tax-free account and pay this amount in taxes on the gains: zero percent.
What is tax-free movement of money?
Self-directed accounts can use this type of loan where only the property itself is collateral, not personal assets, to purchase real estate.
What is a non-recourse loan?
The IRS will trigger a prohibited transaction penalty if you or your spouse use or occupy this property bought with a tax-free account.
What is the account-owned investment property?
For self-directed tax-free accounts, you should hire your own professional to understand how self-dealing rules apply to your specific investments.
Who is a CPA or tax attorney?
High earners who exceed Roth IRA income limits can use this strategy: contribute to a Traditional IRA, then immediately convert to a Roth.
What is a Backdoor Roth conversion?
Unlike personal accounts, wealth held in this structure is protected from creditors and lawsuits because the trust, not the beneficiary, owns the assets.
What is a dynasty trust or family foundation?
When a self-directed IRA buys real estate with a non-recourse loan, income from the financed portion is taxed under this rule: Unrelated Debt Financed Income.
What is UDFI tax on leveraged real estate?
A prohibited transaction occurs if you use personal funds to improve or maintain a property owned by this account instead of using account funds.
What is commingling personal and account funds?
To properly establish a dynasty trust or family foundation with generational tax advantages, you should hire this legal professional.
Who is an estate planning attorney?
The mega backdoor Roth strategy allows high earners to contribute up to $70,000 annually using this type of contribution beyond normal limits.
What is an after-tax employer contribution?
Making annual contributions to maximize tax-free account growth is known as this strategy
What is annual contribution strategy or maxing out contributions?
Investing in rental properties with a self-directed account allows your money to multiply through this type of income
What is rental income or passive income?
Using a tax-free account to purchase property while your spouse will benefit creates this type of prohibited transaction
What is a disqualified person violation or spousal disqualification?
When investing in alternative assets with a self-directed account, you should hire this type of professional to handle compliance and custodial rules
What is a custodian or account custodian?
If you have significant income and want to shelter more than traditional IRA limits allow, this catch-up strategy allows pre-tax contributions for those over age 50
What is a catch-up contribution or IRA catch-up contribution?
Before 2026 exemption sunsets to $5.49M, ultra-wealthy families use dynasty trusts to shelter $13M+ per beneficiary from estate and generation-skipping transfer taxes across multiple generations.
What is the lifetime gift tax exemption planning strategy?
A self-directed account that allows you to use leverage to purchase real estate and pay tax only on the loan portion of income is restricted by this tax rule
What is UDFI tax or Unrelated Debt-Financed Income tax?
Mixing personal funds with account funds to improve a rental property owned by your account triggers this prohibited transaction penalty
What is commingling or the commingling prohibited transaction penalty?
For complex tax-free wealth strategies like dynasty trusts and multi-generational planning, you should consult this type of professional who specializes in estate planning and inheritance law
What is an estate planning attorney or family law attorney?