Paying WAY too much for your self-directed IRA? Tired of “the way things go” at your current custodian? Don’t abandon self-direction— it may just be time for a change.
Self Directed investors are a different breed— innovative, creative, driven. You deserve a custodian that will complement that ambition. For that, you may need to ditch your current provider.
You Can Change IRA Custodians Anytime
If you’re frustrated with your existing self-directed IRA custodian, you can switch. There‘s a misconception among IRA investors that once you have a self directed IRA, you can’t transfer or move it to another custodian. That is NOT the case. As with any other service, if you’re not satisfied, you can always change companies. You also shouldn’t worry about the tax implications of moving your account— when you transfer IRA assets from one IRA to another, there are no IRS tax penalties, since the funds or assets are going from one tax-sheltered account to another.
The only penalties that you may encounter are account closing and/or transfer fees from your previous custodian— and even then it might be worth the move if you find the right self-directed IRA deal. After all, if you’re reading this article, you’re probably already on your way out. Make sure you do it wisely and your move makes financial sense— always shop for lower fees and better service.
Self-Directed IRA: Full Transfer In-Kind
The best way to move your self directed IRA to IRAR is to do a Full Transfer. Your IRA assets are moved directly from one custodian to another (without you taking possession of the account), without leaving you open to potential tax liabilities. To do this, use our Account Transfer Form. Once received, IRAR takes care of sending the transfer request to your current custodian. This is the easiest and fastest way to move your account and sever ties with your existing custodian— for good.
More than likely you have alternative assets in your IRA, which are registered in the name of your previous custodian. When transferring your self-directed IRA, there is a re-registration process that takes place. Most custodians charge a fee to generate the paperwork that reassigns the assets to the new custodian. This transfer of assets without liquidating is called an in-kind transfer.
When your current custodian receives the transfer form with this request from IRAR Trust, they will send us a formal authorization of change of ownership, assigning the assets to IRAR Trust FBO(For Benefit Of) your IRA. From there IRAR takes care of the rest, notifying the asset providers of this change. It’s not too complicated.
Here are some important pointers to make sure your transfer goes smoothly:
Shop fees and service. There are many companies that provide self directed IRA services. At IRAR Trust we charge per asset, not based on the value of account. This way, if your IRA grows, you don’t have to pay more. Standard of Service is also important. Here is a template if you want to compare fees and service.
Contact IRAR with any questions. If you are unsure at any point during this process, please reach out to us— we’re always willing to help, via phone or email. Make sure all paperwork is completed correctly, or else your transfer may be rejected by your current custodian. Your request will have to be resent, which can slow down the process and complicate any pending deals. This is why we recommend opening your account and moving your funds as soon as possible, so any delays do not impact your investment plans.
Follow up with your custodian. Once you have opened your account at IRAR and submitted your transfer form, we will send your request to the custodian within 24 business hours. However, once we’ve submitted the request, the process is out of our hands. Follow up with your custodian to make sure they completed your transfer. We have experienced that when the account owner gets involved, things get done faster. Most of the time other custodians won’t talk to us because we are not the owner of the account, so if you keep on top of it, you’ll save time.
Up-to-date asset information. Sometimes we receive re-registered assets for clients that don’t come with an address or any contact information for the investment provider. It’s important that you have this information. IRAR will need it to send the re-registration of asset request to your investment provider, who (once they receive this information) need to send new title or ownership documents vested in the name of your IRA (as shown: IRAR Trust FBO Your Name & Account Number) for safe keeping and recordkeeping. If there’s no way to contact the investment provider, then there’s no way for us to get these documents.
There are many reasons why you might want to leave your IRA custodian and find a better one. Our clients come to us for our low fees and excellent service. With our speedy transaction times, as well as our responsiveness and knowledge of our space, there’s not much you can’t accomplish with IRAR— but you can’t say that about every self directed IRA provider.
We’d be honored to receive your business, AND— if you move your account before the tax deadline, we’ll waive the new account establishment fee when transferring from a self-directed IRA custodian. Request a free consultation if you’re interested in paying less while receiving excellent service. Happy investing.