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SDIRA Accounts
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SELF-DIRECTED INDIVIDUAL RETIREMENT ACCOUNTS (SDIRAS)
Plan for retirement with an account that gives you the control to manage your investments. SouthStar Bank is one of the few banks that offers passive Self Directed Custodial Individual Retirement Accounts that allow you control over your future. Whether you're establishing a new SDIRA or looking to improve your current one, SouthStar Bank is here to guide you.
“SouthStar Bank is one of the nicest banks around, both in terms of its people and facilities. They have always given immediate and personal attention to any banking request.” ~ Bruce Karnes
SDIRA ACCOUNTS
Self-directed IRAs (SDIRAs) are retirement accounts that give investors greater control over their investment choices compared to conventional IRAs. Unlike standard IRAs, which typically limit investments to stocks, bonds, and mutual funds, SDIRAs allow individuals to invest in a broader range of assets, including real estate, promissory notes, private equity, commodities, etc.
Types of Custodian Relationships:
Full custodial accounts/relationships
– A full custodian is a financial institution that directly manages your investments, signs and approves all transactions and manages funds on behalf of your SDIRA.Passive custodian accounts/relationships
– A passive custodian is a financial institution that holds and safeguards assets without actively managing them. SouthStar Bank would serve as a passive custodian to your accounts.SouthStar Bank SDIRA
Account Opening Options
Types of SDIRAs:
Custodian Checkbook IRA
A passive custodian SDIRA with checkbook control offers enhanced freedom and control over your investments. Your custodial SDIRA holds an LLC or Trust that you manage, which in turn opens a Checkbook IRA account for handling your retirement funds and investments. This structure allows you to invest in alternative assets beyond conventional options and provides easier access to your funds compared to traditional IRAs.Types of SDIRAs:
Checkbook IRA with Custodian Control
A Checkbook IRA, also known as a Self-Directed IRA with Checkbook Control, provides greater investment freedom and control. With a Checkbook IRA, you can make investment decisions and manage your retirement funds more directly. They also give you the ability to invest in alternative assets beyond the traditional options. With the addition of Checkbook authority for this IRA type, accountholders enjoy more convenient access to funds compared to other IRAs.
Get More Details
Please complete the form below and one of our personal bankers will be in touch.
Open a SDIRA Account
Your SouthStar Bank Personal Banker can walk you through the SDIRA rules and requirements, including recent changes regarding maximum SDIRA contributions and required minimum distributions.
Contact our SDIRA Account Specialists today!
Dayton Mejias
AVP/IRA Development Officer
361.596.4611
dayton.mejias@southstarbank.com
Bridget Brosh
AVP/Branch Manager/IRA Coordinator
361.596.4611
bridget.brosh@southstarbank.com
Frequently Asked Questions
- SouthStar Bank is a 104 year old community bank with flexible, common- sense financial solutions, specializing in offering the personalized service you expect along with the latest technology you need.
- Our executives have been through the frustration and confusion most investors
experience when trying to open a SDIRA. At SouthStar Bank, our specialized IRA team is committed to making the process of establishing your accounts as simple as possible. - SouthStar Bank stands out as one of the few custodians that offers interest on your accounts. While this may seem remarkable in the current rate environment, many SDIRA account holders do not earn interest on their balances.
- Investment Options: Traditional IRAs generally restrict investments to standard financial products like stocks, bonds, and mutual funds. In contrast, SDIRAs offer a broader range of investment possibilities, including real estate, private equity, precious metals, and more alternative assets. SouthStar Bank will serve as a Limited-Passive custodian to this account meaning we will oversee the account’s compliance and monetary transactions while allowing the account holder to make investment decisions without direct oversight.
- Control: SDIRAs provide greater autonomy for investors, allowing them to directly choose and manage their investments.
- Custodians: SDIRAs are held by specialized custodians, such as SouthStar Bank, who facilitate alternative investments.
Opening an IRA at SouthStar Bank is simple.
- Decide how much you want to open it with and for how long you want it to mature.
- Visit one of our branches.
- Provide identification, choose beneficiaries, sign paperwork and make an initial contribution.
An Self-Directed Individual Retirement Account offers important benefits for taxpayers.
- Diverse Investment Options: SDIRAs provide access to a wide array of investment opportunities beyond traditional stocks and bonds. This can help investors diversify their portfolios and potentially tap into unique growth opportunities.
- Greater Control: Investors have direct control over their investment choices and strategy, allowing them to tailor their retirement plan to their personal financial goals and risk tolerance.
- Tax Advantages: Like other IRAs, SDIRAs offer tax-deferred growth on investments, meaning you can potentially grow your retirement savings without immediate tax implications.
- Investment Flexibility: SDIRAs can adapt to changing market conditions and investor interests, providing flexibility to shift investments based on economic trends or personal preferences.
- Potential for Income Generation: Certain investments, such as rental properties, can generate income streams that are reinvested within the IRA.
To open an SDIRA account, you must open a Custodial Savings account with a Companion Checking account.
