How to Choose a Self-Directed IRA Custodian

Custodians Come In All Types And Sizes, But Choose Wisely

Not all custodians are the same or provide the same services, but they all are regulated similarly by federal and state law.

It is important to determine the type of company you want to work with, based on your investment choice and account type. Are you looking for a one-stop shop? If so, perhaps a large trust company with many types of services would be ideal. But beware, don't get stuck with a company that is a jack of all trades, master of none.

Best Fees

Fees that are often ignored by account holders and can significantly affect IRA accounts. Retirement plan fees are the primary cause of retirement fund depletion, hindering the growth of your hard-earned money. To comprehend fee structures, it is essential to understand how custodians charge and compare. As your investments increase, you should not be required to pay more.

When comparing a list of self-directed IRA custodians, be sure to cross-examine annual fees, setup fees, opening account fee, and transaction fees. Also make sure to check for either a flat quarterly fee or an asset-based fee. 

Customer Service & Industry  Knowledge

When choosing a self-directed IRA custodian, knowledge is just as important as IRS oversight. Look for a custodian with experience and expertise in your desired investment area. Their knowledge should extend beyond just the IRA rules but encompass the specific regulations surrounding your chosen asset class. For example, if you are investing in real estate, you should look for a real estate IRA custodian knowledgeable in real estate.

Clear communication is very important, especially when it comes to your retirement. If you have a time-sensitive question, you want to make sure you can get a hold of the staff— and when you do, they know what they're talking about.

Best Service Times

Timely responses are crucial. A good custodian can streamline the process,  ensuring bills are paid on time (avoiding fees) and transactions are completed efficiently. Look for signs of responsiveness: were your calls returned promptly? Did you feel like you were getting passed around?  When researching custodians, ask about customer service hours, communication style, and processing times for transactions. Avoiding these potential headaches upfront can save you time and frustration later.