Retirement
Mineral rights in your IRA.
Self-Directed IRA
A real asset for
retirement.
A self-directed IRA allows investors to own more than traditional stocks, bonds, and mutual funds. Through a qualified custodian, many self-directed IRAs can hold alternative assets, including mineral and royalty interests.
Holding mineral and royalty interests inside a self-directed IRA provides ownership of a tangible, income-producing real asset while allowing royalty income to flow directly into the retirement account as oil and natural gas are produced and sold.
Why hold mineral rights in an IRA
A retirement asset
you don’t manage.
A tax-advantaged home
Inside an IRA, the income a mineral interest produces is treated under your account’s tax rules rather than as current taxable income. How that applies to you is a question for your tax advisor.
Diversify your retirement
Mineral rights add a tangible, energy-linked asset to a retirement account that might otherwise hold only stocks, bonds, and funds.
The operator does the work
Mineral owners carry none of the drilling or operating costs, and the operator runs the wells, so the asset needs no management once it is in the account.
How it works
From account to
income.
- Step 1
Open or use an SDIRA
Set up a self-directed IRA with a qualified custodian, or use one you already have. The custodian holds the account and handles its administration.
- Step 2
Fund the account
Contribute or transfer funds into the IRA following your custodian's process, so the account is ready to acquire the interest.
- Step 3
Heritage coordinates
We work directly with your custodian to acquire the mineral or royalty interest and convey it into the account by recorded deed.
- Step 4
Income returns to the IRA
When the wells produce, royalty income is paid into your IRA, where it stays under the account's tax treatment.
Before you begin
What to confirm
first.
Holding mineral and royalty interests in a self-directed IRA is straightforward, but there are a few important things to confirm with your custodian and tax advisor before getting started.
Your account & custodian
Not every self-directed IRA custodian allows mineral and royalty interests, and requirements vary by account. Confirm your account is eligible before moving forward. If you do not already have a custodian, Heritage can recommend experienced self-directed IRA custodians we have worked with over the years.
Applicable tax rules
Owning mineral and royalty interests inside a retirement account may have tax implications depending on your circumstances. We recommend discussing your situation with your tax advisor before making a purchase.
Your long-term plan
Mineral and royalty interests are real property that are often held for the long term. Consider how they fit within your retirement objectives, investment timeline, and overall financial plan.
Heritage works directly with self-directed IRA custodians throughout the acquisition process to help make the ownership transition as smooth as possible. When you are ready, we can walk through owning mineral rights directly or a 1031 exchange instead.
Frequently asked questions
Common IRA questions.
A few of the questions we hear most about holding mineral rights in a retirement account. See the full list, grouped by topic, on our FAQ page.
Investor voices
What investor partners say.
“I've worked with Don and his team at Heritage Land & Minerals on over five mineral properties. I've continued investing with them and have enjoyed how easy and straightforward they have made the process.”
Names abbreviated at investor request. Past performance is not indicative of future results.
Confidential Prospectus
Heritage Land & Minerals
Prospectus
Current offerings, tax considerations, and a mineral acquisition overview.
- Current mineral and royalty offerings
- 1031 exchange eligibility overview
- Tax considerations overview
- State-by-state field data
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If you're an accredited investor exploring oil and gas investments, we're ready to discuss fit and share our current prospect details.
Risk disclosure
Mineral and royalty investments involve substantial risk, including the loss of principal. Distributions depend on production volumes, commodity prices, operator performance, and other factors outside Heritage's control, and are not guaranteed. Mineral and royalty interests are illiquid; there is no public market for them, and resale, including its price and timing, is not guaranteed. Heritage Land & Minerals offerings are available only to accredited investors and only by means of a confidential prospectus that contains the complete risk disclosure. This website is not an offer to sell or a solicitation of an offer to buy any security.