How to Transfer an IRA to a Self-Directed IRA

A self-directed IRA is a useful tool for individuals to save for retirement, offering tax advantages and diversifying their investment portfolio with alternative assets. Transferring an existing IRA to a self-directed IRA allows you to move retirement funds or eligible assets from one custodian to another without taking a distribution. Because the transfer occurs directly between custodians, it generally does not create a taxable event. 

If you're transferring an IRA to IRAR Trust Company, here's how the process works, what you'll need to complete, and what to expect while your transfer is being processed.

What Is an IRA Transfer and How Does It Work?

An IRA transfer moves existing retirement funds or assets directly from one IRA custodian to another without distributing them to the account holder.

To transfer your IRA to IRAR, you'll first complete and sign the transfer form. IRAR reviews the request and sends the paperwork to your current custodian. Once the current custodian processes the request, the funds or eligible assets are transferred directly to your IRAR account.

If you're transferring investments rather than cash, such as real estate or private placements, this is called an in-kind transfer. The assets move between custodians without being sold.

Full vs. Partial IRA Transfers

You can transfer all or part of your existing IRA to IRAR.

• Full Transfer: Moves the entire IRA balance, including eligible assets, from your current custodian to IRAR.
• Partial Transfer: Moves a portion of your funds or eligible assets to IRAR while the remaining balance stays with your current custodian.
  
  

Both options follow the same general transfer process, although additional documentation may be required depending on the assets involved.

How to Transfer Money from Your Current Custodian to IRAR:

1. Open an IRAR Account: Start by completing the online new account form.
2. Complete Transfer Form: Fill out a transfer form provided by IRAR and submit it for processing.
3. Review and Authorization: IRAR will review the form to ensure accuracy. Once reviewed, the paperwork will be sent to your current custodian.
4. Follow up with Your Current Custodian: Once IRAR sends the transfer request, it is in your current custodian’s hands and now on their timeline. IRAR cannot directly communicate with your current custodian regarding the transfer. If you wish to expedite the process, contact your current custodian, and inquire about updates on the transmittal of funds or assets.
   
   

What is Not Transferable?

IRAR accepts transfers of cash and many alternative assets, but some investments cannot be transferred directly. Certain holdings, such as mutual funds or precious metals, may need to be liquidated before transferring the proceeds. If you're transferring a brokerage IRA as cash, you'll need to sell the applicable investments before submitting your transfer request.

Assets without a current valuation may also require additional documentation. Confirm the requirements with IRAR before initiating a transfer involving non-cash or difficult-to-value assets.

Do I Need a Medallion Stamp?

Some custodians require a Medallion Signature Guarantee before processing an IRA transfer. Contact your current custodian to confirm whether one is required. If your custodian requires a Medallion Signature Guarantee, indicate this on your transfer form so IRAR can assist with the process.

How Long Until the Funds are Transferred to IRAR?

IRA transfer times vary depending on your current custodian, the assets being transferred, and whether additional documentation is required. Cash transfers may take less time than in-kind transfers involving real estate, private investments, or other alternative assets. Missing paperwork, signature requirements, and processing procedures can also cause delays.

Once IRAR submits your transfer request, contact your current custodian directly for updates or to inquire about expedited processing.

How Do I Know if the Transfer is Complete?

IRAR will send you a confirmation email detailing that the funds / assets have been received or further instructions if additional information is needed.

Is There Additional Documentation Required by IRAR?

Additional documentation may be required when transferring non-cash assets such as real estate, LLC interests, or private stock.

For non-cash transfers, IRAR requires a copy of your current account statement dated within the past six months. Depending on the investment, additional paperwork may be necessary to update ownership or custodial records. IRAR will provide instructions for any additional documentation needed to complete your transfer.

Are There Any Fees?

IRAR does not charge a fee to process an incoming IRA transfer request. However, certain transaction and delivery fees may apply.  There is a $30 fee for incoming wire transfers and a $30 fee for overnight delivery when required. Transfers received by ACH or check have no incoming transaction fee.

Your current custodian may also charge fees for transferring funds or closing your existing account.

How Many Transfers Can You Make a Year?

There is no IRS limit on the number of direct IRA-to-IRA transfers you can complete each year.

Unlike indirect IRA-to-IRA rollovers, which are generally limited to one in a 12-month period, direct custodian-to-custodian transfers are not subject to this restriction.

Conclusion

Transferring an IRA to IRAR starts with opening your account and submitting a completed transfer request. Once IRAR forwards the paperwork, your current custodian handles the release of the funds or assets.

Before submitting your request, confirm whether your investments can transfer directly, whether additional documentation is required, and whether your current custodian charges any fees.

If you have questions about transferring your IRA to IRAR, contact our team at 888-322-6534.