Self-Directed IRA custodian (also known as a passive custodian or trustee in retirement planning) allows IRA holders to engage in non-traditional investments.
The main responsibility of the self-directed IRA custodian is to facilitate transactions for the IRA holder as well as take custody of the IRA owned investments. The IRA custodian is not considered a fiduciary and does not provide any investment advice as part of their duties.
The self-directed individual retirement accounts have been made available to better serve the needs of investors and offer greater control and wider selection of investment options for investors.
This investment vehicle has become very popular among cryptocurrency investors for its tax advantages when compared to investing in a personal capacity.