In this episode of the Directed IRA Podcast, Mat Sorensen and Mark J. Kohler tackle the ten most frequently asked questions they hear from clients, investors, and professionals about self-directed IRAs. Whether you're brand new to self-directing or looking to avoid common missteps, this episode offers clear, practical guidance grounded in real-world scenarios and thousands of consultations.

They cover what your IRA can and cannot invest in, how prohibited transactions work, when to use a checkbook IRA or IRA LLC, how UBIT applies to certain investments, and what type of account is best for your goals. If you've ever wondered whether you’ll pay tax to self-direct, how to fund your account, or whether you're too old or too young to get started, this is the episode for you.

Subscribe to the Directed IRA podcast for more episodes diving deeper into self-directed investing strategies. Visit directedira.com to learn more about taking control of your retirement investments.

Chapters

• 00:00 – Introduction to Self-Directed IRAs
• 02:50 – What Can You Invest In?
• 04:05 – Investment Restrictions and Limitations
• 06:55 – The Prohibited Transaction Rules
• 08:40 – Choosing the Right Account Type
• 12:45 – Checkbook IRAs and IRA LLCs
• 18:35 – Taxes, Penalties and Common Misconceptions
• 24:30 – Finding Your Investment Strategy
• 29:20 – Final Thoughts and Disclaimer

Directed IRA Homepage: https://directedira.com/

Directed IRA Explore (Linktree): https://linktr.ee/SelfDirectedIRA

Book a Call: https://directedira.com/appointment/

Other:
Mat Sorensen: https://matsorensen.com & https://linktr.ee/MatSorensen
KKOS: https://kkoslawyers.com
Main Street Business https://mainstreetbusiness.com

In this episode of the Directed IRA Podcast, Mat Sorensen and Mark J. Kohler dive into the Top 10 Mistakes in Self-Directing Your IRA—and how to avoid them. Whether you're just getting started or already managing self-directed investments, this episode outlines the most common pitfalls that can derail your retirement strategy, including prohibited transactions, improper deal structuring, and UBIT traps. Mat and Mark not only break down each mistake but also provide practical guidance on how to structure deals the right way to stay compliant and protect your tax-advantaged account. They also highlight a critical bonus topic on Required Minimum Distributions (RMDs) for illiquid assets that every older investor must understand.

If you’re looking to confidently navigate self-directed retirement investing, this episode is for you.

• 00:00:08 – 00:01:50 – Intro, Past Events, & Empowering You to Self-Direct Your IRA
• 00:01:50 – 00:04:15 – Breaking Out of the Brokerage Box (Disney Analogy): Investment Freedom Explained
• 00:04:15 – 00:04:18 – Top 10 Mistakes in Self-Directing Your IRA
  • 00:04:18 – 00:06:30 – Mistake 1: Early Commitment to Deals
  • 00:06:30 – 00:07:54 – Mistake 2: Buying Assets You Already Own
  • 00:07:54 – 00:08:36 – Mistake 3: Transacting with Disqualified Persons
  • 00:08:36 – 00:11:30 – Mistake 4: Violating the 50% Rule in Business Ownership
  • 00:11:30 – 00:13:12 – Mistake 5: Providing Services to IRA-Owned Assets
  • 00:13:40 – 00:16:50 – Mistake 6: Personally Profiting from IRA Transactions
  • 00:16:50 – 00:21:30 – Mistake 7: Using IRA-Owned Assets Personally
  • 00:21:30 – 00:23:04 – Mistake 8: Improper Flow of Funds with IRA LLCs
  • 00:22:55 – 00:24:20 – Mistake 9: Underfunding Investments and the Need for Capital Planning
  • 00:24:20 – 00:31:04 – Mistake 10: Ignoring UBIT and UDFI Tax Traps
• 00:31:04 – 00:32:30 – Bonus: RMD Pitfalls with Illiquid IRA Assets
• 00:32:30 – 00:34:15 – Conclusion: Knowledge is Power—Avoiding Pitfalls with Confidence

Directed IRA Homepage: https://directedira.com/

Directed IRA Explore (Linktree): https://linktr.ee/SelfDirectedIRA

Book a Call: https://directedira.com/appointment/

Other:
Mat Sorensen: https://matsorensen.com & https://linktr.ee/MatSorensen
KKOS: https://kkoslawyers.com
Main Street Business https://mainstreetbusiness.com

Ready to get started? Book a call with one of our IRA specialists!: https://directedira.com/appointment/

If you’ve got an old 401(k) or IRA collecting dust, it’s time to take control. In this episode, Mat and Mark explain how to move your account into a self-directed IRA—without triggering taxes or penalties—and why it matters. You’ll learn what you can invest in, from real estate to startups, and how to avoid costly mistakes. Mat and Mark also share real examples and walk you through the steps to get started. Don’t let your retirement account sit idle—put it to work.

• 00:00:10 – Why Your Old 401(k) or Sleepy IRA Needs Attention
• 00:02:04 – Understanding the Power of Self-Directed IRAs
• 00:03:17 – Common Myths and Misconceptions
• 00:04:37 – What You Can Invest In with a Self-Directed IRA
• 00:05:13 – How to Move Your IRA Without Tax or Penalty
• 00:08:50 – Real Investment Examples: Real Estate, Crypto, and More
• 00:17:00 – Prohibited Transactions and Restrictions
• 00:20:32 – How to Get Started with Directed IRA

Directed IRA Homepage: https://directedira.com/

Directed IRA Explore (Linktree): https://linktr.ee/SelfDirectedIRA

Book a Call: https://directedira.com/appointment/

Other:
Mat Sorensen: https://matsorensen.com & https://linktr.ee/MatSorensen
KKOS: https://kkoslawyers.com
Main Street Business https://mainstreetbusiness.com