What type of retirement savings account specifically allows for self-directed investment choices?

The correct answer is that a self-directed IRA specifically allows for self-directed investment choices. This type of retirement account enables individuals to have greater control over their investments, allowing them to choose from a broader range of assets beyond traditional stocks and bonds. These assets can include real estate, precious metals, private equity, and more, giving investors the flexibility to align their retirement savings with their personal investment strategies.

In contrast, while Roth IRAs and Traditional IRAs also provide tax-advantaged savings, they typically have more restrictions on the types of investments you can make directly. Employer-sponsored 401(k) plans often limit investment choices to a selection of mutual funds or investment options offered by the employer, which may not provide the same breadth of choice as a self-directed IRA. Thus, the self-directed IRA is uniquely designed for those looking to actively manage their retirement investments across a wider array of asset classes.