Self-Directed Traditional IRA
Your Retirement. Your call.
A Self-Directed Traditional IRA gives you tax-deferred contributions and investment options far beyond Wall Street.
Due to its tax-deferred growth, a Traditional IRA is one of the most common retirement savings vehicles in the United States. But unfortunately, investments are limited to the typical stocks, bonds, and mutual funds.
The situation changes when you self direct that Traditional IRA, and you’re allowed to put your money to work in a broader range of investments while keeping all the same tax advantages as a standard IRA.
With Horizon Trust as your custodian, you can self-direct your IRA into qualified alternative assets like real estate, precious metals, or private placements. And yes, you can still invest into traditional assets such as stocks, bonds, and mutual funds, but you choose what ones you want, including individual stocks, and also ETFs and REITs.
This flexibility lets you build a portfolio that matches your personal goals and risk tolerance.
Contributions to a Traditional IRA are often tax-deductible, and all earnings grow tax-deferred until you withdraw funds in retirement. For 2025, contribution limits are $7,000 per year, or $8,000 if age 50 or older, following the IRS’s updated limits, and they typical rise every year.
2025 Traditional IRA Contribution Limits and Deadlines
- Annual Contribution Limit: $7,500
- Catch-Up Contribution (age 50+): $1,100
- Tax Year Deadline: April 15, 2026
See If You Qualify for a Self-Directed Traditional IRA
A Self-Directed Traditional IRA keeps the same tax-deferred benefits—while giving you far more control over how your retirement dollars are invested.
5-Star Rated Custodian
Why Self Direct a Traditional IRA? Because Standard IRAs Limit Your Ability for Wealth
- A self-directed Traditional IRA removes those restrictions so you can hold both traditional and approved alternative assets under one account.
- Many banks and financial institutions don’t allow self-direction, keeping investors confined to narrow fund menus.
- A Horizon Trust account removes those walls and gives you direct authority over your investment decisions.
Most investors start with a Traditional IRA because it offers tax-deferred growth and is simple to open.
A self-directed version builds on that by allowing investors to expand beyond limited brokerage options, which can help compound wealth.
Standard IRAs typically restrict you to mutual funds or basic securities
Roth IRA Highlights
| Category | Highlights |
|---|---|
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Assets |
All assets available with standard IRAs as well as alternative assets such as:
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Custodians |
(Passive) Must be certified to handle self-directed IRAs specifically. Carries out account management and holds assets but does not offer investment advice.
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Prohibited transactions |
Prohibited transactions include:
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LLC Eligibility
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SDIRAs can hold an LLC, giving that LLC checkbook control. |
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Tax structure |
Can be Traditional or Roth |
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Withdrawals |
Traditional SDIRAs:
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Contribution limits |
$7,000 annually, with an additional $1,000 if you are 50 or older (2025) |
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Income limits |
Traditional SDIRA does not have an income limit. |
Traditional IRA Highlights
Tax Advantages
Contributions may be tax-deductible, and earnings grow tax-deferred until withdrawn in retirement.
Eligibility
Any individual with earned income can open a Traditional IRA, even if they participate in an employer retirement plan (deduction limits may apply).
Contribution Limits
$7,000 annually, or $8,000 if age 50 or older.
Rollover Options
Funds can be rolled over or transferred into another Traditional IRA, SEP IRA, or Roth IRA without losing tax advantages.
Withdrawals
Distributions before 59½ are taxed as ordinary income and may incur a 10% early-withdrawal penalty unless an IRS exception applies.
Required Minimum Distributions
RMDs begin at age 73 under current IRS rules.
Qualified Expenses
Withdrawals may also be used under specific exceptions for higher-education costs or first-time home purchases (up to $10,000).
Proven Success. Trusted Leadership. Real Impact.
At Horizon Trust, we make it simple to open and manage a Self-Directed IRA, so you can take control of your retirement on your terms. Founded by Greg Herlean, who has overseen more than $1.3 billion in real estate transactions, Horizon Trust was built by someone who understands what self-directed investors need: personalized service, fast transactions, and a custodian that stays out of your way.
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Self-Directed Traditional IRAs Help Investors Build Retirement Wealth Faster
Whether you’re new to retirement investing or shifting from an employer plan, a self-directed Traditional IRA helps you grow wealth at your own pace and control.
Some reasons investors choose Horizon Trust’s self-directed Traditional IRA include:
- Straightforward account setup and guided onboarding
- Freedom to easily choose investments that match your personal strategy
- IRS-compliant custodial support to protect your tax-advantaged status
Open a Self-Directed Traditional IRA Account in 3 Simple Steps
Horizon Trust makes it easy to set up a self-directed Traditional IRA so you can start investing quickly.
STEP 1
Create Your Account and Fund Your Tax-Advantaged Account
Choose one of two options:
- Transfer from another IRA or custodian.
- Make a direct contribution from earned income.
STEP 2
Select and Direct Your Investments
Once funded, choose the assets you want to hold and instruct Horizon Trust to execute transactions on your behalf.
STEP 3
Manage and Grow
Use your online account to monitor investments, rebalance, or add new contributions each year.
Our support team is available at every step to assist with documentation, compliance, and funding.
Contact Horizon Trust today to learn more about opening your Self-Directed Roth IRA or converting an existing retirement account.
Disclaimer
Horizon Trust Company is an independent passive Custodian and is not associated or affiliated with and does not recommend, promote or advise any specific investment, investment opportunity, investment sponsor, investment company or investment promoter or any agents, employees, representatives or other of such firms or entities. Investments are not FDIC Insured, offer no bank guarantee and may lose value.
Learn About Self-Directed Traditional IRAs
What Exactly Is a Traditional IRA?
A Traditional Individual Retirement Account (IRA) is a personal retirement savings plan that allows pre-tax or tax-deductible contributions, depending on income. All earnings grow tax-deferred until you withdraw them in retirement, where distributions are taxed as ordinary income.
A self-directed Traditional IRA gives you full control over how those funds are invested, while Horizon Trust ensures administrative compliance.
Traditional IRA Eligibility
To qualify for a Traditional IRA, you must have earned income and be under the age of 70½ for contributions (as of 2020 rules).
You can contribute even if you have an employer-sponsored plan, though your tax deduction may be limited based on income and filing status.
If you’re married, you may also contribute to a spousal IRA even if one spouse has little or no income, as long as a joint tax return is filed.
Traditional IRA Contribution Limits
For 2025, contribution limits are $7,000 per person, or $8,000 for individuals 50 and older.
All contributions must come from earned income and be made by the tax filing deadline—typically April 15 of the following year.
Exceeding these limits can trigger a 6% IRS penalty, so it’s important to contribute correctly and keep proper records.
Similarities and Differences Between a Self-Directed IRA and a Standard IRA
Both accounts share the same tax treatment and contribution limits, but differ in how you invest.
- Investment Options: A standard IRA limits you to common market products like mutual funds or ETFs. A self-directed IRA lets you hold additional assets such as real estate, private loans, or metals, within IRS guidelines.
- Custodial Role: A standard IRA custodian offers investment products directly. A self-directed custodian like Horizon Trust focuses on compliance, record-keeping, and transaction processing—you choose the investments.
- Investor Responsibility: A self-directed IRA puts investment decisions in your hands, requiring you to research and manage holdings carefully.
This flexibility allows experienced investors to expand their portfolios while maintaining full IRS compliance.
Traditional vs. Roth IRA
Traditional and Roth IRAs share the same contribution limits but differ in tax treatment.
- Traditional IRA: Contributions may be tax-deductible, and growth is tax-deferred. Withdrawals are taxed as income.
- Roth IRA: Contributions are made with after-tax dollars. Growth and qualified withdrawals are tax-free, and there are no required minimum distributions.
How you choose depends on whether you want a tax break today (Traditional) or tax-free income in retirement (Roth
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Trusted by investors nationwide to take control of their retirement through Self-Directed IRAs.
Helping clients grow and protect wealth across real estate, crypto, and private investments.