Whats a Self-Directed Roth IRA Custodian?
Don’t let this term confuse you. A self-directed Roth IRA custodian is just a fancy phrase for the financial institution responsible for holding your Roth IRA account. Sometimes the word “trustee” is used instead of “custodian,” but they both essentially mean the same thing. The trustee or custodian of your Roth IRA must be a federally insured bank, credit union, savings and loan, brokerage firm, or other financial entity approved by the IRS to serve as a trustee or custodian for your account. The IRS expects the custodian to oversee the administrative functions of your account, making the necessary reports required by law, and notifying the government of the account’s existence.
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?
