Self-directed Roths and a potential loophole for the IRS to look into.

[Ms. Toad]

5. It's not a loophole.

It is a well-regulated retirement account. Any trustee on a Rogh IRA is obligated to file annual paperwork reporting every Roth the IRS.

You can have as many Roth IRAs as you want, so long as your annual contribution is no more than what you are permitted in a year (which varies somewhat by age).

There are basically two formats for individual IRAs. You deduct teh contribution from the top of your income (regular IRA) before taxes, so it reduces your taxes now (but you pay taxes on both the income and later). Or - you pay taxes on the income now - and everything in the account is yours tax-free at retirement (the Roth). At one point I had between a half-dozen and a dozen IRAs, either Roth or regular. They are now consolidated into 2 accounts (one of each variety).

You might want to do a little basic research before you assume it is some sort of scam.