SELF-DIRECTED INDIVIDUAL RETIREMENT ACCOUNTS (SDIRAS)

Q: How Does a SDIRA differ from an IRA?

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.

Plan for retirement with an account that gives you the control. SouthStar Bank is one of the few banks that offer Self Directed Custodial Individual Retirement Accounts that allow you control over your future.

“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 traditional 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, private equity, and commodities.

Types of SDIRAs:

Custodian Checkbook IRA

A Custodian Checkbook IRA, also known as a Self-Directed IRA with Checkbook Control, provides greater investment freedom and control. With a Custodian 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.

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.

Name (required)

Email (required)

Phone

Current Customer

Message

*Personal information such as social security number or account number, user ID or password should NOT be shared through this form. State ONLY your question or product inquiry. Please contact your nearest branch to discuss account specifics.

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

How Does a SDIRA differ from an IRA?

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.

How Can I Open a SDIRA?

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.

How Can Opening a SDIRA Benefit Me?

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.

What are my Account Options if I Open an SDIRA?

To open an SDIRA account, you must open a Custodial Savings account with a Companion Checking account.