What is a self-directed IRA custodian?
A self-directed IRA custodian is approved by the IRS but you are allowed to direct the investments of the IRA. Many custodians claim that they allow you to self-direct your IRA investments but then only let you invest in to what they offer. A truly self-directed IRA allows you to make the decisions without restriction.
The custodian is a bank or savings and loan institution, as defined in IRC § 408(n), or any other entity that has the approval of the IRS to act as custodian. In order to have a self-directed IRA, it needs to be held with a custodian who will allow investments into non-traditional investments. There are very few of these types of custodians.
The Custodian is a bank or savings and loan association, as defined in IRC 408(n), or any other entity that has the approval of the IRS to act as Custodian. In order to have a self-directed IRA, it needs to be held with a Custodian who will allow investments into non-traditional investments. There are very few of these types of custodians. A Retirement Account Facilitator or Administrator can set up the legal structure such as an LLC or C Corporation that allows for checkbook control of the funds. The Facilitator or Administrator, unlike the Custodian, does not hold the funds, but usually contracts with a Custodian to hold the funds as part of the services provided.
The Custodian is a bank or savings and loan association, as defined in IRC 408(n), or any other entity that has the approval of the IRS to act as Custodian. In order to have a self-directed IRA, it needs to be held with a Custodian who will allow investments into non-traditional investments. There are very few of these types of custodians. A Retirement Account Facilitator, like the Guidant Financial Group, sets up the legal structure such as an LLC or C Corporation that allows for checkbook control of the funds. The Facilitator, unlike the Custodian, does not hold the funds, but usually contracts with a Custodian to hold the funds as part of the services provided.
Related Questions
- With respect to a self-directed IRA account, would a statement from the custodian be acceptable as a proof of claim, in lieu of a copy of the check or wire transfer?
- How is a Self-Directed IRA with an independent custodian different from the one I have with a traditional custodian or administrator?
- What types of assets can one typically invest into with a self-directed IRA custodian?
