Take Control Of Your Future
Self-Directed IRA
- If you have a Groundfloor account, click here to get started.
- If you are new to Groundfloor, sign up and choose “Invest with my IRA funds”.
- Transfer funds from a different retirement plan.
- Earn a tax-advantaged return of 7%-14% by creating a portfolio of individual Groundfloor loans.
Why choose iRAs
Benefits of Groundfloor IRAs
Groundfloor offers LROs, or Limited Resource Obligations, that are submitted to the SEC for qualification. Every one of these debt security loans are backed by an underlying real estate asset, meaning you’re put in a first lien position to help mitigate risk.
- Tax-advantaged returns
- 7%-14% returns on your investment
- Flexibility: You’re in control
- All IRA fees are waived through December 2024
Learn More
The Types Of Self-Directed IRA
Groundfloor allows everyday investors, both accredited and non-accredited alike, to invest fractionally in qualified-for-public-sale real estate projects on a nationwide scale.
A tax-deferred savings program that allows individuals to invest earned income in a retirement savings account. Traditional IRAs are the most common accounts individuals use to save for their retirement.
A Traditional IRA can be a good option for individuals who want to save for retirement while receiving a tax deduction for their contributions. This tax-deferred growth can help the account balance grow over time, and the flexibility of investment options can allow the individual to tailor their portfolio to their needs and risk tolerance. However, it’s important to be aware of the potential tax consequences of withdrawals and the required minimum distributions.
ROTH IRA contributions are not tax-deductible, however, once you are 59 1/2 and the account has been established for a minimum of 5 years, funds can be withdrawn tax-free at any time. To contribute to a ROTH IRA in 2023, you must have a modified adjusted gross income below $138,000 (single) or $218,000 (married filing jointly).
Tax Treatment: Unlike a traditional IRA, contributions to a Roth IRA are made with after-tax dollars, which means that you don’t get an upfront tax deduction. However, the earnings in a Roth IRA grow tax-free, and qualified withdrawals are tax-free as well. This can be a significant advantage over a traditional IRA, especially if you expect to be in a higher tax bracket in retirement.
Required Minimum Distributions: Different from a traditional IRA, there are no required minimum distributions (RMDs) from a Roth IRA during your lifetime. This means that you can leave the money in the account to continue growing tax-free for as long as you like.
Overall, a Roth IRA can be a powerful retirement savings tool, especially for those who expect to be in a higher tax bracket in retirement. By paying taxes on contributions upfront, you can enjoy tax-free growth and withdrawals in the future.
A Simplified Employee Pension (SEP) IRA allows self-employed individuals or small business owners employers a way to make contributions to their employee’s retirement.
Any business owner or self-employed individual can open a SEP IRA, regardless of the size of their business. In order to contribute to a SEP IRA, you must have earned income from self-employment or from your business. Employees of the business may also be eligible to participate in the plan.
A SEP IRA can be a good option for small business owners and self-employed individuals who want to save for retirement and offer a retirement benefit to their employees. With tax-deductible contributions and tax-deferred growth, a SEP IRA can help individuals build a retirement nest egg while minimizing their tax liability.
A Savings Incentive Match Plan for Employees (SIMPLE) is a tax-favored retirement plan that employers can set up for their employees.
Both the employer and the employee can make contributions to the SIMPLE IRA. The employer must make either a matching contribution (up to 3% of the employee’s compensation) or a non-elective contribution (2% of the employee’s compensation). Employees can contribute up to $13,500 in 2022, or $16,500 if they are age 50 or older.
Withdrawals from a SIMPLE IRA are subject to the same rules as a traditional IRA. Withdrawals before age 59 1/2 may be subject to a 10% early withdrawal penalty, in addition to ordinary income taxes. There are also required minimum distributions (RMDs) that must be taken starting at age 72.
A Rollover IRA is a traditional IRA that is typically used by those who want to move retirement savings from an employer-issued 401(k) to another retirement plan.
Take Control Of Your Future
Invest Smarter
Self-directed IRAs provide a unique way for Groundfloor investors to diversify their retirement assets. Groundfloor working with our IRA custodian, Forge Trust, enables individuals and businesses to earn the high returns that Groundfloor investors are generating while enjoying the tax benefits of an IRA.
Limited Time Offer: We are waiving all investor fees associated with IRAs through December 2024.
- $25,000 Minimum Opening Balance
You've got questions, we've got answers
Groundfloor IRA FAQ
Groundfloor offers an alternative investment opportunity for investors to build their own portfolios of real estate loans ranging in yield from 7%–14%. When these assets are held in an IRA, earnings may grow tax-deferred (Traditional IRA) or tax-free (ROTH IRA), helping investors maximize their contribution amounts today while saving for retirement.
Opening a Groundfloor IRA account is straightforward. Simply click here to get started, or if you already have a Groundfloor Investor Account, log in, click the top-right section of the page, and choose “Open an IRA Account”.
Now is a great time to sign up for a Groundfloor IR IRA Account! In addition to taking advantage of the tax benefits of investing through an IRA, Groundfloor will waive all fees associated with IRA accounts through 2024. If/when we do charge investor fees, we will provide all users at least 90 days notice.
When you log in to your Groundfloor IRA account, select “Contribute & Transfer”. Our site will then guide you through the process of transferring funds from an existing IRA custodian, directly contributing funds via check or rolling over funds from an existing retirement plan such as an employer-issued 401(k). Expect 2-4 weeks for contributions to complete.
Take the time to familiarize yourself with IRAs as an investment vehicle and consult an advisor to talk about tax, legal and financial benefits, and responsibilities. It’s great to be hands-on, but you don’t want to risk the chance of being penalized for breaking an IRS rule. Stay in control and stay ahead of your IRA investing by consulting a subject matter expert.
Yes. Moving your IRA from another custodian to Groundfloor requires a bit of information. To rollover an account to us from another custodian, please open and log in to your account.
A request to transfer funds will begin processing within two business days. Cash-only transfers typically take a few business days to begin processing.
