Advisors: The Expanding Role of Alternatives in Year-End IRA Strategy

Prepare for broader access to alternatives

As advisors wrap up year-end reviews, they are helping clients evaluate investment performance, set expectations for the year ahead, and finalize any remaining action items. At the same time, a new policy spotlighting alternative assets is reshaping conversations around retirement diversification. Recent headlines point to a growing interest in expanding investor access to private markets—an area where self-directed IRAs (SDIRAs) already lead the way.

In August 2025, President Trump issued an executive order titled “Democratizing Access to Alternative Assets for 401(k) Investors.” The order directs the Department of Labor (DOL) and Securities and Exchange Commission (SEC) to re-examine guidance that may discourage plan sponsors from offering private-market investments within participant-directed plans such as 401(k)s.

While the directive does not immediately change IRA or plan regulations, it signals a broader shift toward expanding investor access to private markets. For those already using self-directed IRAs (SDIRAs), that access exists today, offering flexibility and diversification opportunities long before new 401(k) guidance takes effect.

Year-end IRA essentials

As 2025 wraps up, advisors can use annual reviews to help clients stay compliant, informed, and strategically positioned for the year ahead. Topics to include to highlight for alternative asset-focused investors: 

• Required Minimum Distributions (RMDs)
• Funding and contribution checks
• Beneficiary updates
• Portfolio performance and diversification

Year-end IRS deadlines

Many IRA owners who must take required minimum distributions (RMDs) wait until the last minute, which can lead to delays during this high-volume period. Submitting RMD requests early is especially important when assets require special handling or have limited liquidity, as is often the case with alternative investments.

For clients with multiple IRAs, it may be more efficient to take the total RMD from an account with more liquid assets. This approach can help avoid selling investments quickly or at an unfavorable price.

It may also be a good time to discuss qualified charitable distributions (QCDs) with eligible clients.  Individuals aged 70½ or older can transfer up to $108,000 (2025 limit) directly from an IRA to an eligible charity without including the amount in taxable income. Clients should consult their tax professional before proceeding with a QCD to ensure compliance and proper reporting. 

Other year-end transactions, including transfers, rollovers, and Roth conversions, can also take longer to process during this busy season. Submitting requests early helps ensure timely completion ahead of the IRS's December 31 deadline. 

Beneficiary review

Year-end is also an ideal time to confirm that beneficiary designations are current and accurate. Life events such as marriage, divorce, birth, or death can easily make forms outdated. Ensuring designations reflect the client’s intent helps avoid unnecessary complications later.

For those interested in charitable giving, designating a Traditional IRA to a qualified charity may be a tax-efficient option since charities do not pay income tax on IRA distributions.

Alternative assets: From discussion to action

The administration’s executive order has reignited national interest in expanding access to private markets through qualified plans. While regulators consider how to make these investments more broadly available, SDIRAs already offer that flexibility today.

Within a compliant custodial framework, SDIRAs allow investors to hold a wide range of non-traditional assets, including private equity, private debt, real estate, and precious metals, while maintaining the tax advantages of an IRA. Key benefits include:

• Broader diversification: Access to private markets and tangible assets can help reduce reliance on public equities and bonds.
• Greater control: Investors have the ability to select specific opportunities that align with their personal goals, risk tolerance, or values.
• Tax-advantaged growth: Earnings on alternative assets inside an IRA continue to grow on a tax-deferred or tax-free basis, depending on account type.
• Portfolio resilience: Exposure to non-correlated assets may help balance volatility during market cycles.

As policymakers work to “democratize” alternative asset access in employer-sponsored plans, SDIRA investors are already benefiting. They are supported by established custodial processes and oversight designed to maintain IRS compliance.

Looking Ahead

Alternative assets are steadily moving from the periphery to the mainstream of retirement planning. As regulators explore ways to broaden access, self-directed IRAs remain the established path for investors seeking diversification through private markets today.

With more than a decade of experience in alternative-asset custody, STRATA Trust Company provides the infrastructure, expertise, and compliance support investors and their advisors need to navigate these opportunities confidently. Contact STRATA’s SDIRA experts to learn how our custody solutions can help investors align their year-end strategies with the expanding future of alternative investing.