What Matters Most in a Self-Directed IRA Custodian?

To invest in alternative assets such as real estate or private equity, you need an IRA custodian.

It is important to understand what a self-directed IRA custodian is and what you should look for or avoid. Your retirement account matters for your future; find a custodian that supports you.

What Is a Self-Directed IRA custodian?

A self-directed IRA custodian is a regulated financial institution (such as a bank or trust company) that can hold legal title for your retirement assets and handles the administration of the account.

A Self-Directed IRA is a type of individual retirement account (IRA) that allows the account owner to invest in more assets beyond a stock or brokerage account. In a SDIRA, you can diversify and invest in alternative investments.

What Can You Invest in With a Self-Directed IRA?

To give you an idea of what you can invest in, below are 4 examples of assets you can invest in with a Self-Directed IRA.

1. LLCs: An LLC allows you to invest in alternative assets directly with your Self-Directed IRA, and a great benefit of this is that the LLC shelters you from any personal liability.

2. Private Placements: This allows you to invest in privately held companies that are not sold on the open market.

3. Promissory Notes: This allows you to extend credit to another individual or entity.

4. Real Estate: As one of the most popular investment options, you can invest in different types of real estate like rental properties, rehabilitations / flips, or lending money to other non-disqualified individuals to purchase their own properties.

Investing in any of the above can help you grow your retirement savings through assets that mean more to you. Choosing the right custodian is an important part of that process.

Why Your Choice of Custodian Matters

Your retirement matters, so your choice of custodian should matter just as much. Compare custodians not only on fees but also on industry experience, processing of transactions, and customer service.

Here are some of the essential things to look for in a custodian:

1. Industry experience: As experts, your custodian should be able to handle everything you bring their way; plus, with experience, they are always up to date on IRS rules and regulations.

2. Fees: Transparency is key. Compare account establishment fees, annual or quarterly maintenance fees, asset fees, transaction charges, wire fees, and check fees. Consider how each fee schedule would apply to assets you expect to hold.

3. Service: When it comes to service, look for a custodian with experience supporting your intended asset class. Are they able to answer your questions? Ask about standard processing times for purchases, bill payments, wires, document reviews, and other common requests. You should also review customer service hours, available communication methods, cutoff times, and procedures for urgent transactions. Understanding these details in advance can help you plan transactions and avoid preventable delays.

Those are the top three things to think about when you are ready to open a Self-Directed Account or transfer / rollover to a new custodian.

Why Choose IRAR as Your Self-Directed IRA Custodian?

IRAR has over 30 years of industry experience. Our team includes Certified IRA Services Professionals (CISP), so we can help you keep up with changing rules and regulations regarding your accounts. With over $2 billion in assets under custody, we go above and beyond for our clients and receive reviews like this:

“I’ve been dealing with IRAR for nearly 20 years. Their team helps make the somewhat complicated self-directed IRA process seamless, and they are always helpful.” ~ Russell Hall.

We have competitive and transparent fees that make retirement affordable for everyone, so that when your investment grows, you continue to pay the same annual fee for that investment regardless of its value.

We have excellent service and responsive client support. The review we got from Russell shows how we are always helpful. We do this for every client. When you call, we respond. A real live specialist answers the phone and makes sure your questions and concerns are answered. We don’t keep you waiting like you are in a Starbucks line. We know how important it is for you to speak to someone, because your retirement goals matter to us. We process all transactions promptly and keep you informed along the way.

We make it easy to fund your account. Use our Transfer and Rollover assistant to move your funds to a self-directed IRA.

How IRAR Can Help

IRAR can help you open and fund a Self-Directed IRA and handle the paperwork and recordkeeping involved in purchasing, holding, and selling real estate inside the account. This includes processing transactions, recordkeeping income and expenses tied to the investment, and keeping the account's records aligned with what the IRS requires from a retirement account.

If you're ready to look at your options, schedule a free consultation with an IRAR specialist to walk through how the account would work for the type of investment you are considering. IRAR can help you open and fund a self-directed IRA, understand the process, and complete the paperwork needed to invest in alternative assets. Schedule your free consultation today!